Cover Page Cover Page
Cover Page Cover Page - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jan. 31, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Jul. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-12622 | |
Entity Registrant Name | OIL-DRI CORPORATION OF AMERICA | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-2048898 | |
Entity Address, Address Line One | 410 North Michigan Avenue | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60611-4213 | |
City Area Code | 312 | |
Local Phone Number | 321-1515 | |
Title of 12(b) Security | Common Stock, par value $0.10 per share | |
Trading Symbol | ODC | |
Security Exchange Name | NYSE | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
ICFR Auditor Attestation Flag | true | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Public Float | $ 193,493,002 | |
Entity Central Index Key | 0000074046 | |
Current Fiscal Year End Date | --07-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 5,383,876 | |
Common Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,078,283 | |
Common Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 40,890,000 | $ 21,862,000 |
Accounts receivable, less allowance of $1,078 and $644 in 2020 and 2019, respectively | 34,911,000 | 35,459,000 |
Inventories, net | 23,893,000 | 24,163,000 |
Prepaid repairs expense | 5,662,000 | 4,708,000 |
Prepaid expenses and other assets | 3,064,000 | 3,084,000 |
Total Current Assets | 108,420,000 | 89,276,000 |
Property, Plant and Equipment | ||
Buildings and leasehold improvements | 39,274,000 | 38,852,000 |
Machinery and equipment | 152,583,000 | 145,402,000 |
Office furniture and equipment | 21,502,000 | 20,569,000 |
Vehicles | 17,863,000 | 15,375,000 |
Gross depreciable assets | 231,222,000 | 220,198,000 |
Less accumulated depreciation and amortization | (169,040,000) | (159,036,000) |
Net depreciable assets | 62,182,000 | 61,162,000 |
Construction in progress | 13,717,000 | 12,519,000 |
Land and mineral rights | 17,049,000 | 17,117,000 |
Total Property, Plant and Equipment, Net | 92,948,000 | 90,798,000 |
Other Assets | ||
Goodwill | 9,262,000 | 9,262,000 |
Trademarks and patents, net of accumulated amortization of $457 and $299 in 2020 and 2019, respectively | 1,566,000 | 1,599,000 |
Customer list, net of accumulated amortization of $6,887 and $6,297 in 2020 and 2019, respectively | 898,000 | 1,488,000 |
Deferred income taxes | 7,302,000 | 7,755,000 |
Operating lease right-of-use assets | 9,816,000 | 0 |
Other | 5,670,000 | 5,049,000 |
Total Other Assets | 34,514,000 | 25,153,000 |
Total Assets | 235,882,000 | 205,227,000 |
Current Liabilities | ||
Current maturities of notes payable | 1,000,000 | 3,083,000 |
Accounts Payable | 12,529,000 | 8,092,000 |
Dividends payable | 1,808,000 | 1,761,000 |
Operating lease liabilities | 2,170,000 | 0 |
Accrued expenses | ||
Salaries, wages and commissions | 13,505,000 | 7,490,000 |
Trade promotions and advertising | 2,349,000 | 1,588,000 |
Freight | 1,313,000 | 2,635,000 |
Real estate tax | 1,658,000 | 1,581,000 |
Other | 9,875,000 | 6,376,000 |
Total Current Liabilities | 46,207,000 | 32,606,000 |
Noncurrent Liabilities | ||
Notes payable, net of unamortized debt issuance costs of $150 and $31 in 2020 and 2019, respectively | 8,848,000 | 3,052,000 |
Deferred compensation | 5,140,000 | 6,014,000 |
Pension and postretirement benefits | 15,140,000 | 23,721,000 |
Long-term operating lease liabilities | 9,135,000 | 0 |
Other | 3,448,000 | 4,288,000 |
Total Noncurrent Liabilities | 41,711,000 | 37,075,000 |
Total Liabilities | 87,918,000 | 69,681,000 |
Stockholders’ Equity | ||
Additional paid-in capital | 44,993,000 | 41,300,000 |
Retained earnings | 176,579,000 | 164,756,000 |
Noncontrolling interest | (174,000) | (14,000) |
Accumulated Other Comprehensive Loss | ||
Pension and postretirement benefits | (11,994,000) | (14,891,000) |
Cumulative translation adjustment | (260,000) | (148,000) |
Total Accumulated Other Comprehensive Loss | (12,254,000) | (15,039,000) |
Less treasury stock, at cost (3,090,230 Common and 335,816 Class B shares in 2020 and 2,926,547 Common and 324,741 Class B shares in 2019) | (62,269,000) | (56,543,000) |
Total Stockholders’ Equity | 147,964,000 | 135,546,000 |
Total Liabilities and Stockholders’ Equity | 235,882,000 | 205,227,000 |
Common Stock | ||
Stockholders’ Equity | ||
Common Stock, par value $.10 | 845,000 | 828,000 |
Common Class B | ||
Stockholders’ Equity | ||
Common Stock, par value $.10 | $ 244,000 | $ 258,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet Parentheticals (Parentheticals) - USD ($) $ in Thousands | Jul. 31, 2020 | Jul. 31, 2019 |
Current Assets | ||
Allowance for doubtful accounts | $ 1,078 | $ 644 |
Other Assets | ||
Trademarks and patents accumulated amortization | 457 | 299 |
Customer list accumulated amortization | 6,887 | 6,297 |
Noncurrent Liabilities | ||
Debt Issuance Costs, Noncurrent, Net | $ 150 | $ 31 |
Common Stock | ||
Stockholders’ Equity | ||
Common Stock, par value per share | $ 0.10 | $ 0.10 |
Common Stock, shares issued | 8,449,003 | 8,284,199 |
Treasury Stock, shares | 3,090,230 | 2,926,547 |
Common Class B | ||
Stockholders’ Equity | ||
Common Stock, par value per share | $ 0.10 | $ 0.10 |
Common Stock, shares issued | 2,437,402 | 2,576,479 |
Treasury Stock, shares | 335,816 | 324,741 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Net Sales | $ 283,227 | $ 277,025 |
Cost of Sales | (207,404) | (211,365) |
Gross Profit | 75,823 | 65,660 |
Other Operating Income | 13,000 | 0 |
Selling, General and Administrative Expenses | (63,996) | (55,248) |
Income from Operations | 24,827 | 10,412 |
Other (Expense) Income | ||
Interest income | 259 | 250 |
Interest expense | (518) | (594) |
Foreign exchange loss | (161) | (243) |
Other, net | (1,387) | 4,723 |
Total Other (Expense) Income, Net | (1,807) | 4,136 |
Income Before Income Taxes | 23,020 | 14,548 |
Income Tax Expense | (4,280) | (1,933) |
Net income | 18,740 | 12,615 |
Net (Loss) Income Attributable to Noncontrolling Interest | (160) | 4 |
Net Income Attributable to Oil-Dri | $ 18,900 | $ 12,611 |
Basic Common | ||
Net Income Per Share | ||
Basic | $ 2.70 | $ 1.82 |
Diluted | $ 2.65 | $ 1.80 |
Average Shares Outstanding | ||
Basic (in shares) | 5,149 | 5,112 |
Diluted (in shares) | 5,246 | 5,165 |
Basic Class B Common | ||
Net Income Per Share | ||
Basic | $ 2.02 | $ 1.36 |
Diluted | $ 1.99 | $ 1.35 |
Average Shares Outstanding | ||
Basic (in shares) | 2,020 | 2,068 |
Diluted (in shares) | 2,049 | 2,086 |
Consolidate Statements of Compr
Consolidate Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Net Income (Loss) Attributable to Parent | ||
Net Income Attributable to Oil-Dri | $ 18,900 | $ 12,611 |
Other Comprehensive Income (Loss) | ||
Pension and postretirement benefits (net of tax) | 2,897 | (4,507) |
Cumulative translation adjustment | (112) | 83 |
Other Comprehensive (Loss) Income | 2,785 | (4,424) |
Comprehensive Income | $ 21,685 | $ 8,187 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity Statement - USD ($) | Total | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Common & Class B Stock | Treasury Stock | Noncontrolling Interest Agromex | Parent Oil-Dri Corporation of America |
Total, Beginning of Period at Jul. 31, 2018 | $ 131,885,000 | $ 38,473,000 | $ 158,935,000 | $ (10,615,000) | $ (18,000) | $ 1,056,000 | $ (55,946,000) | ||
Common & Class B Stock, Beginning of Period (in shares) at Jul. 31, 2018 | 10,555,828 | ||||||||
Treasury Stock, Beginning of Period (in shares) at Jul. 31, 2018 | (3,238,833) | ||||||||
Net Income | 12,615,000 | 0 | 0 | $ 0 | $ 0 | ||||
Net (Loss) Income Attributable to Noncontrolling Interest | 4,000 | 4,000 | |||||||
Net Income Attributable to Oil-Dri | 12,611,000 | 12,611,000 | |||||||
Other Comprehensive Income (Loss) | (4,424,000) | 0 | 0 | (4,424,000) | 0 | 0 | 0 | ||
Dividends Declared | (6,790,000) | 0 | (6,790,000) | 0 | 0 | 0 | 0 | ||
Purchases of Treasury Stock | (147,000) | 0 | 0 | 0 | 0 | $ 0 | $ (147,000) | ||
Purchases of Treasury Stock (in shares) | (4,905) | ||||||||
Net Issuance of Stock Under Long-Term Incentive Plans (in shares) | 304,850 | (7,550) | |||||||
Net issuance of stock under long-term incentive plans | (1,000) | 419,000 | 0 | 0 | 0 | $ 30,000 | $ (450,000) | ||
Amortization of Restricted Stock | 2,408,000 | 2,408,000 | 0 | 0 | 0 | 0 | 0 | ||
Total, End of Period at Jul. 31, 2019 | 135,546,000 | 41,300,000 | 164,756,000 | (15,039,000) | (14,000) | $ 1,086,000 | $ (56,543,000) | ||
Common & Class B Stock, End of Period (in shares) at Jul. 31, 2019 | 10,860,678 | ||||||||
Treasury Stock, End of Period (in shares) at Jul. 31, 2019 | (3,251,288) | ||||||||
Net Income | 18,740,000 | 0 | 0 | $ 0 | $ 0 | ||||
Net (Loss) Income Attributable to Noncontrolling Interest | (160,000) | (160,000) | |||||||
Net Income Attributable to Oil-Dri | 18,900,000 | 18,900,000 | |||||||
Other Comprehensive Income (Loss) | 2,785,000 | 0 | 0 | 2,785,000 | 0 | 0 | 0 | ||
Dividends Declared | (7,077,000) | 0 | (7,077,000) | 0 | 0 | 0 | 0 | ||
Purchases of Treasury Stock | (5,541,000) | 0 | 0 | 0 | 0 | $ 0 | $ (5,541,000) | ||
Purchases of Treasury Stock (in shares) | (169,058) | ||||||||
Net Issuance of Stock Under Long-Term Incentive Plans (in shares) | 25,727 | (5,700) | |||||||
Net issuance of stock under long-term incentive plans | 1,000 | 183,000 | 0 | 0 | 0 | $ 3,000 | $ (185,000) | ||
Amortization of Restricted Stock | 3,368,000 | 3,368,000 | 0 | 0 | 0 | 0 | 0 | ||
Contributions from noncontrolling interests | 142,000 | 142,000 | 0 | 0 | 0 | 0 | 0 | ||
Total, End of Period at Jul. 31, 2020 | $ 147,964,000 | $ 44,993,000 | $ 176,579,000 | $ (12,254,000) | $ (174,000) | $ 1,089,000 | $ (62,269,000) | ||
Common & Class B Stock, End of Period (in shares) at Jul. 31, 2020 | 10,886,405 | ||||||||
Treasury Stock, End of Period (in shares) at Jul. 31, 2020 | (3,426,046) | ||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent | $ 724,000 | ||||||||
Noncontrolling Interest, Parent Ownership Percentage Prior to Purchase of Additional Interest | 52.00% | ||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 78.40% | ||||||||
Noncontrolling Interest Ownership Percentage Prior to Parent's Purchase of Additional Interest | 48.00% | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 21.60% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net Income | $ 18,740 | $ 12,615 |
Adjustments to reconcile net income to net cash provided by operating activites: | ||
Depreciation and amortization | 13,923 | 13,330 |
Amortization of investment discounts | 0 | (10) |
Non-cash stock compensation expense | 3,368 | 2,407 |
Deferred income taxes | 453 | (406) |
Provision for bad debts and cash discounts | 423 | (179) |
Loss on the disposals of property, plant and equipment | 114 | 6 |
Curtailment gain on SERP Plan | (1,296) | 0 |
(Increase) decrease in: | ||
Accounts receivable | (12) | (1,729) |
Inventories | 213 | (1,693) |
Prepaid expenses | (949) | (786) |
Other assets | (1,242) | (617) |
Increase (decrease) in: | ||
Accounts payable | 4,238 | 590 |
Accrued expenses | 8,632 | (589) |
Deferred compensation | 421 | (86) |
Pension and postretirement benefits | (5,684) | 3,307 |
Other liabilities | 1,120 | 583 |
Total Adjustments | 23,722 | 14,128 |
Net Cash Provided by Operating Activities | 42,462 | 26,743 |
Cash Flows from Investing Activities | ||
Capital expenditures | (14,740) | (15,029) |
Proceeds from sale of property, plant and equipment | 63 | 7 |
Purchases of short-term investments | 0 | (4,678) |
Dispositions of short-term investments | 0 | 11,812 |
Net Cash Used in Investing Activities | (14,677) | (7,888) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of notes payable | 10,000 | 0 |
Principal payments on notes payable | (6,321) | (3,083) |
Dividends paid | (7,030) | (6,656) |
Purchase of treasury stock | (5,541) | (147) |
Contributions from noncontrolling interests | 142 | 0 |
Net Cash Used in Financing Activities | (8,750) | (9,886) |
Effect of exchange rate changes on cash and cash equivalents | (7) | 136 |
Net Increase in Cash and Cash Equivalents | 19,028 | 9,105 |
Cash and Cash Equivalents, Beginning of Year | 21,862 | 12,757 |
Cash and Cash Equivalents, End of Year | 40,890 | 21,862 |
Other cash flows: | ||
Interest payments, net of amounts capitalized | 273 | 305 |
Income tax payments (refund) | (2,319) | (713) |
Noncash investing and financing activities: | ||
Capital expenditures accrued, but not paid | 2,990 | 2,263 |
Cash dividends declared and accrued, but not paid | $ 1,808 | $ 1,761 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES N ATURE OF O PERATIONS We are a leader in developing, manufacturing and/or marketing sorbent products. Our sorbent products are principally produced from clay minerals. Our absorbent clay products include cat litter, industrial floor absorbents, agricultural chemical carriers and animal feed additives. Our adsorbent products include bleaching clays, which are used for filtration of edible oils and for purification of petroleum-based oils. We also sell synthetic sorbents, which are used for industrial cleanup. P RINCIPLES OF C ONSOLIDATION The Consolidated Financial Statements include the accounts of Oil-Dri Corporation of America and its subsidiaries. All significant intercompany balances and transactions have been eliminated from the Consolidated Financial Statements. R ECLASSIFICATION Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. These immaterial reclassifications had no effect on the previously reported net income. M ANAGEMENT U SE OF E STIMATES The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Our estimates and assumptions are revised periodically. Actual results could differ from these estimates. For more information see Critical Accounting Policies and Estimates in Item 7 “ Management's Discussion and Analysis of Financial Condition and Results of Operations. ” In March 2020, the World Health Organization declared COVID-19 a pandemic. Despite the adverse effects of COVID-19 on the overall economy, we have not experienced a significant decline in customer orders and sales in fiscal year 2020. However, the effects of COVID-19 are unprecedented, and therefore we are unable to ascertain the effects on our sales and net earnings in the future. C ASH AND C ASH E QUIVALENTS Cash equivalents are highly liquid investments with maturities of three months or less. T RADE R ECEIVABLES We recognize trade receivables when the risk of loss and title pass to the customer. We record an allowance for doubtful accounts based on our historical experience and a periodic review of our accounts receivable, including a review of the overall aging of accounts, consideration of customer credit risk and analysis of facts and circumstances about specific accounts. A customer account is determined to be uncollectible when it is probable that a loss will be incurred after we have completed our internal collection procedures, including termination of shipments, direct customer contact and formal demand of payment. We retain outside collection agencies to facilitate our collection efforts. Past due status is determined based on contractual terms and customer payment history. I NVENTORIES The composition of inventories was as follows as of July 31 (in thousands): 2020 2019 Finished goods $ 14,500 $ 13,957 Packaging 4,587 5,681 Other 4,806 4,525 Inventories $ 23,893 $ 24,163 Inventories are valued at the lower of cost (first-in, first-out) or net realizable value. Inventory costs include the cost of raw materials, packaging supplies, labor and other overhead costs. We performed a detailed review of our inventory items to determine if an obsolescence reserve adjustment was necessary. The review surveyed all of our operating facilities and sales groups to ensure that both historical issues and new market trends were considered. The obsolescence reserve not only considered specific items, but also took into consideration the overall value of the inventory as of the balance sheet date. We recorded inventory obsolescence reserves of approximately $926,000 and $704,000 as of July 31, 2020 and 2019 , respectively. The higher obsolescence reserve and lower packaging inventories are attributed to our focus on inventory management and enhanced data available from our ERP system. Other inventories increased mainly due to higher levels of raw and purchased materials. T RANSLATION OF F OREIGN C URRENCIES Assets and liabilities of foreign subsidiaries, where the local currency is the functional currency, are translated to U.S. Dollars at the exchange rates in effect at period end. Income statement items are translated at the average exchange rate on a monthly basis. Resulting translation adjustments are recorded as a separate component of stockholders’ equity. I NTANGIBLES AND G OODWILL We amortize most of our intangibles on a straight-line basis over periods ranging from 4 to 20 years. Our customer list intangible asset is amortized at an accelerated amortization rate in the earlier years to reflect the expected pattern of decline in the related benefits over time. Intangible amortization was $804,000 in fiscal year 2020 and $862,000 in fiscal year 2019 . Some intangible assets were determined to have indefinite lives and are not amortized, specifically one acquired trademark recorded at $376,000 . Our estimated intangible amortization expense for the next five fiscal years is as follows (in thousands): 2021 $ 583 2022 $ 431 2023 $ 227 2024 $ 91 2025 $ 66 The weighted average amortization period of our intangibles subject to amortization is as follows (in years): Weighted Average Amortization Period Trademarks and patents 14.3 Customer list 3.3 Total intangible assets subject to amortization 5.9 We periodically review indefinite-lived intangibles and goodwill to assess for impairment. Our review is based on cash flow considerations and other approaches that require significant judgment with respect to volume, revenue, expenses and allocations. Impairment occurs when the carrying value exceeds the fair value. Much of our goodwill cannot be specifically assigned to one of our operating segments because of the shared nature of our production facilities; however, for purposes of our most recent impairment analysis we estimated the goodwill allocation and assigned $5,489,000 to the Retail and Wholesale Products Group and $3,773,000 to the Business to Business Products Group. We performed our annual impairment testing in the fourth quarter of fiscal years 2020 and 2019 . There was no impairment required based on our analysis for fiscal years 2020 or 2019 . We will continue to consider the need to re-perform impairment testing throughout the year when circumstances such as unexpected adverse economic factors, unanticipated technological changes, competitive activities and acts by governments and courts indicate that an asset may become impaired. In addition, although we have not identified any triggering events relating to goodwill or our intangibles, the ultimate effects of COVID-19 could change this assessment in the future, as outlined under Item 1A, Risk Factors, discussed above. O VERBURDEN R EMOVAL AND M INING C OSTS We surface mine sorbent minerals on property that we either own or lease as part of our overall operations. A significant part of our overall mining cost is incurred during the process of removing the overburden from the mine site, thus exposing the sorbent material used in a majority of our production processes. These stripping costs are treated as a variable inventory production cost and are included in cost of sales in the period they are incurred. Stripping costs included in cost of sales were approximately $1,722,000 and $2,430,000 for fiscal years 2020 and 2019 , respectively. Stripping costs decreased in fiscal year 2020 due to a decrease in fuel costs and repair costs. We defer and amortize the pre-production overburden removal costs associated with opening a new mine. $316,000 of pre-production overburden removal costs were deferred in fiscal year 2020. There were no pre-production overburden removal costs deferred in fiscal year 2019. Additionally, it is our policy to capitalize the purchase cost of land and mineral rights, including associated legal fees, survey fees and real estate fees. The costs of obtaining mineral rights, including legal fees and drilling expenses, are also capitalized. The amount of land and mineral rights included in land on the Consolidated Balance Sheets were approximately $13,570,000 and $2,165,000 , respectively, as of July 31, 2020 , and were $13,638,000 and $2,165,000 , respectively, as of July 31, 2019 . Pre-production development costs on new mines and any prepaid royalties that may be offset against future royalties due upon extraction of the mineral are also capitalized. Total pre-production costs, including the overburden removal costs deferred above, that were capitalized in fiscal year 2020 were $535,000 . No material capitalized pre-production development costs were recorded in fiscal year 2019 . Prepaid royalties included in current prepaid expenses and in non-current other assets on the Consolidated Balance Sheets were approximately $1,232,000 and $1,184,000 as of July 31, 2020 and 2019 , respectively. R ECLAMATION We perform ongoing reclamation activities during the normal course of our overburden removal. As overburden is removed from a mine site, it is hauled to previously mined sites and is used to refill older sites. This process allows us to continuously reclaim older mine sites and dispose of overburden simultaneously, therefore minimizing the costs associated with the reclamation process. On an annual basis we evaluate our potential reclamation liability in accordance with ASC 410, Asset Retirement and Environmental Obligations. The reclamation assets are depreciated over the estimated useful lives of the various mines. The reclamation liabilities are increased based on a yearly accretion charge over the estimated useful lives of the mines. P ROPERTY , P LANT AND E QUIPMENT Property, plant and equipment are generally depreciated using the straight-line method over their estimated useful lives which are listed below. Depreciation expense was $13,119,000 and $12,468,000 in fiscal years 2020 and 2019 , respectively. Major improvements and betterments are capitalized, while maintenance and repairs that do not extend the useful life of the applicable assets are expensed as incurred. Interest expense may also be capitalized for assets that require a period of time to get them ready for their intended use. There was no capitalized interest in fiscal years 2020 and 2019 . Years Buildings and leasehold improvements 3 - 40 Machinery and equipment Packaging 2 - 20 Processing 2 - 30 Mining and other 2 - 20 Office furniture and equipment 3 - 15 Vehicles 2 - 15 Property, plant and equipment are carried at cost on the Consolidated Balance Sheets and are reviewed for possible impairment on an annual basis or when circumstances indicate impairment that an asset may become impaired. We take into consideration idle and underutilized equipment and review business plans for possible impairment. When impairment is indicated, an impairment charge is recorded for the difference between the carrying value of the asset and its fair market value. No impairment was recorded in either fiscal year 2020 or 2019 . O THER N ONCURRENT L IABILITIES On March 27, 2020, in response to the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into U.S. law. The CARES Act provides for, among other things, deferral of the employer portion of social security taxes incurred through the end of calendar 2020. As permitted by the CARES Act, we deferred approximately $864,000 in payroll taxes during the fiscal year ended July 31, 2020 and expect to defer the payment of payroll taxes each quarter for the remainder of calendar year 2020 to be paid equally in the fourth quarters of calendar years 2021 and 2022 representing approximately $2,100,000 in payroll taxes. T RADE P ROMOTIONS We routinely commit to one-time or ongoing trade promotion programs, primarily in our Retail and Wholesale Products Group. All such costs are netted against sales. We have accrued liabilities at the end of each period for the estimated expenses incurred but not yet paid for these programs. Promotional reserves are provided for sales incentives made directly to consumers, such as coupons, and sales incentives made to customers, such as slotting, discounts based on sales volume, cooperative marketing programs and other arrangements. We use judgment for estimates to determine our trade spending liabilities. We rely on our historical experience of trade spending patterns and that of the industry, current trends and forecast data. A DVERTISING Advertising costs for the development of printed materials, television commercials, web-based digital banners, web-based social media and sales videos are deferred and expensed upon the first use of the materials, unless such amounts are immaterial. Costs paid for communicating advertising over a period of time, such as television air time, radio commercials and print media advertising space, are deferred and expensed on a pro-rata basis. All other advertising costs, including participation in industry conventions and shows and market research, are expensed when incurred. All advertising costs are part of selling, general and administrative expenses. Advertising expenses were approximately $9,674,000 and $6,909,000 in fiscal years 2020 and 2019 , respectively. F AIR V ALUE OF F INANCIAL I NSTRUMENTS Non-derivative financial instruments included in the Consolidated Balance Sheets are cash and cash equivalents and notes payable. These instruments, except for notes payable, were carried at amounts approximating fair value as of July 31, 2020 and 2019 . See Note 4 of the Notes to the Consolidated Financial Statements for additional information regarding the fair value of our financial instruments, including notes payable. R EVENUE R ECOGNITION We recognize revenue when performance obligations under the terms of the contracts with customers are satisfied. Our performance obligation generally consists of the promise to sell finished products to wholesalers, distributors and retailers or consumers and our obligations have an original duration of one year or less. Control of the finished products are transferred upon shipment to, or receipt at, customers' locations, as determined by the specific terms of the contract. We have completed our performance obligation when control is transferred and we recognize revenue accordingly. Taxes collected from customers and remitted to governmental authorities are excluded from net sales. Sales returns and allowances are not material. We have an unconditional right to consideration under the payment terms specified in the contract upon completion of the performance obligation. We may require certain customers to provide payment in advance of product shipment. We recorded a liability for these advance payments of $247,000 and $259,000 as of July 31, 2020 and July 31, 2019 , respectively. This liability is reported in Other Accrued Expenses on the Consolidated Balance Sheets. Revenue recognized during fiscal year 2020 that was included in the liability for advance payments at the beginning of the year was $232,000 . C OST OF S ALES Cost of sales consists of all manufacturing costs, including depreciation and amortization related to assets used in the manufacturing and distribution process, inbound and outbound freight, inspection costs, purchasing costs associated with materials and packaging used in the production process and warehouse and distribution costs. S HIPPING AND H ANDLING C OSTS Shipping and handling costs are included in cost of sales and were approximately $39,865,000 and $47,717,000 for fiscal years 2020 and 2019 , respectively. The decrease in fiscal year 2020 relates to the decrease in freight due to lower transportation rates from improved truck availability. In addition, costs were higher in the first half of the prior fiscal year due to one-time events, including a greater number of product transfers between our plants and warehouses to support customer service during the implementation of our new ERP system on August 1, 2018 and disruptions due to Hurricane Michael. S ELLING , G ENERAL AND A DMINISTRATIVE E XPENSES Selling, general and administrative expenses include salaries, wages and benefits associated with staff outside the manufacturing and distribution functions, all marketing related costs, any miscellaneous trade spending expenses not required to be included in net sales, research and development costs, depreciation and amortization related to assets outside the manufacturing and distribution process and all other non-manufacturing and non-distribution expenses. R ESEARCH AND D EVELOPMENT Research and development costs of approximately $2,765,000 and $3,202,000 were charged to expense as incurred for fiscal years 2020 and 2019 , respectively, and are recorded in selling, general and administrative expenses. P ENSION AND P OSTRETIREMENT B ENEFIT C OSTS We provide a defined benefit pension plan for eligible salaried and hourly employees and we make contributions to fund the plan. We also provide a postretirement health benefit plan to domestic salaried employees who qualify under the plan’s provisions. The postretirement health benefit plan is unfunded. Our pension and postretirement health benefit plans are accounted for using actuarial valuations required by ASC 715, Compensation – Retirement Benefits . The funded status of our defined pension and postretirement health benefit plans are recognized on the Consolidated Balance Sheets. Changes in the funded status that arise during the period but are not recognized as components of net periodic benefit cost are recognized within other comprehensive income, net of income tax. In fiscal year 2020 we amended the defined benefit pension plan and the plan is now closed to new entrants. See Note 8 of the Notes to the Consolidated Financial Statements for additional information. S TOCK -B ASED C OMPENSATION We account for stock options and restricted stock issued under our long term incentive plans in accordance with ASC 718, Compensation – Stock Compensation . The fair value of stock-based compensation is determined at the grant date. The related compensation expense is recognized over the appropriate vesting period. See Note 7 of the Notes to the Consolidated Financial Statements for additional information. I NCOME TAXES Deferred income tax assets and liabilities are recorded for the impact of temporary differences between the tax basis of assets and liabilities and the amounts recognized for financial reporting purposes. Deferred tax assets are reviewed and a valuation allowance is established if management believes that it is more likely than not that some portion of our deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. In addition to existing valuation allowances, we provide for uncertain tax positions, if necessary, when such tax positions do not meet the recognition thresholds or measurement standards prescribed by ASC 740, Income Taxes . Amounts for uncertain tax positions are adjusted when new information becomes available or when positions are effectively settled. We recognize interest and penalties accrued related to uncertain tax positions in income tax expense. U.S. income tax expense and foreign withholding taxes are provided on remittances of foreign earnings and on unremitted foreign earnings that are not indefinitely reinvested. Where unremitted foreign earnings are indefinitely reinvested, no provision for federal or state tax expense is recorded. When circumstances change and we determine that some or all of the undistributed earnings will be remitted in the foreseeable future, a corresponding expense is accrued in the current period. See Note 5 of the Notes to the Consolidated Financial Statements for additional information about income taxes. O THER O PERATING I NCOME Included within Other Operating Income is revenue earned from a confidential license agreement. Pursuant to this agreement, the Company granted a non-exclusive, perpetual license to develop, manufacture, use, distribute and sell products produced using formulations under certain of our patents until their expiration and agreed to certain limitations on the ability of the parties to bring forth patent infringement claims or challenges relating to certain products in exchange for a one-time payment of $13,000,000 . This revenue is recognized at a point in time as it is considered functional intellectual property. N EW A CCOUNTING P RONOUNCEMENTS Recently Adopted Accounting Pronouncements On August 1, 2019 we adopted ASC 842, Leases , using the modified retrospective transition approach and, accordingly, we did not restate prior comparative period financial statements. As of the date of adoption, we elected the package of practical expedients that allowed us to forgo assessment under the ASC 842 guidance whether existing or expired contracts contained leases, the classification of expired or existing leases and the accounting for previously incurred initial direct costs. We also elected the practical expedient to forgo assessment under ASC 842 whether existing or expired land easements not previously accounted for under legacy leasing GAAP contain leases. The adoption of ASC 842 on August 1, 2019 resulted in the recognition of additional ROU assets and lease liabilities related to operating leases of $9,348,000 and $10,910,000 , respectively, on our Consolidated Balance Sheet. There was no material impact to any of our other consolidated financial statements. Recently Issued Accounting Standards In March 2020, the FASB issued guidance under ASC 848, Reference Rate Reform . This guidance provides optional expedients and exceptions to account for debt, leases, contracts, hedging relationships and other transactions that reference LIBOR or another reference rate if certain criteria are met. The guidance is effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating the potential effects of the adoption of this guidance on our Consolidated Financial Statements. In December 2019, the FASB issued guidance under ASC 740, Income Taxes , which simplifies the accounting for income taxes. The guidance removes several specific exceptions to the general principles in ASC 740 and clarifies and makes amendments to improve consistent application of and simplify existing accounting for other areas in ASC 740. This guidance is effective for our first quarter of fiscal year 2022, with early adoption permitted. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. In June 2016, the FASB issued guidance under ASC 326, Financial Instruments-Credit Losses , which requires companies to utilize an impairment model for most financial assets measured at amortized cost and certain other financial instruments, which include trade and other receivables, loans and held-to-maturity debt securities, to record an allowance for credit risk based on expected losses rather than incurred losses. In addition, this new guidance changes the recognition method for credit losses on available-for-sale debt securities, which can occur as a result of market and credit risk, as well as additional disclosures. In general, this guidance will require modified retrospective adoption for all outstanding instruments that fall under this guidance. This guidance is effective for our first quarter of fiscal year 2023. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. There have been no other accounting pronouncements issued but not yet adopted by us which are expected to have a material impact on our Consolidated Financial Statements. |
OPERATING SEGMENTS Level 1 (Not
OPERATING SEGMENTS Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2020 | |
OPERATING SEGMENTS [Abstract] | |
Operating Segments | OPERATING SEGMENTS We have two reportable operating segments: (1) Retail and Wholesale Products Group and (2) Business to Business Products Group. These operating segments are managed separately and each segment's major customers have different characteristics. The Retail and Wholesale Products Group customers include mass merchandisers, wholesale clubs, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies and sports field product users. The Business to Business Products Group customers include: processors and refiners of edible oils, petroleum-based oils and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products. Net sales for our principal products by segment are as follows (in thousands): Business to Business Products Group Retail and Wholesale Products Group Year Ended July 31, Product 2020 2019 2020 2019 Cat Litter $ 14,528 $ 13,764 $ 147,503 $ 135,489 Industrial and Sports — — 29,035 33,341 Agricultural and Horticultural 21,886 24,311 — — Bleaching Clay and Fluids Purification 50,117 51,905 2,429 2,318 Animal Health and Nutrition 17,729 15,897 — — Net Sales $ 104,260 $ 105,877 $ 178,967 $ 171,148 Net sales and operating income for each segment are provided below. The accounting policies of the segments are the same as those described in the Note 1 of the Notes to the Consolidated Financial Statements. We do not rely on any operating segment asset allocations and we do not consider them meaningful because of the shared nature of our production facilities; however, we have estimated the segment asset allocations below for those assets for which we can reasonably determine. The unallocated asset category is the remainder of our total assets. The asset allocation is estimated and is not a measure used by our chief operating decision maker about allocating resources to the operating segments or in assessing their performance. The corporate expenses line in the table below represents certain unallocated expenses, including primarily salaries, wages and benefits, purchased services, rent, utilities and depreciation and amortization associated with corporate functions such as research and development, information systems, finance, legal, human resources and customer service. Corporate expenses also include the annual incentive plan bonus accrual. Other income in fiscal year 2019 included net proceeds upon resolution of legal proceedings. The amount received under a confidential agreement resolving these legal proceedings was material to our financial results for the period. Other operating income in fiscal year 2020 relates to revenue earned from a license arrangement of our intellectual property. See Note 1 of the Notes to the Consolidated Financial Statements. July 31, Assets 2020 2019 (in thousands) Business to Business Products $ 72,987 $ 65,282 Retail and Wholesale Products 95,838 94,809 Unallocated assets 67,057 45,136 Total Assets $ 235,882 $ 205,227 Year Ended July 31, Net Sales Income 2020 2019 2020 2019 (in thousands) Business to Business Products $ 104,260 $ 105,877 $ 31,218 $ 31,388 Retail and Wholesale Products 178,967 171,148 15,859 8,683 Net Sales $ 283,227 $ 277,025 Other Operating Income 13,000 — Corporate Expenses (35,250 ) (29,659 ) Income from Operations 24,827 10,412 Total Other (Expense) Income, Net (1,807 ) 4,136 Income Before Income Taxes 23,020 14,548 Income Tax Expense (4,280 ) (1,933 ) Net Income $ 18,740 $ 12,615 Net (Loss) Income Attributable to Noncontrolling Interest $ (160 ) $ 4 Net Income Attributable to Oil-Dri $ 18,900 $ 12,611 The following is a summary by fiscal year of financial information by geographic region (in thousands): 2020 2019 Sales to unaffiliated customers by: Domestic operations $ 268,007 $ 263,469 Foreign subsidiaries $ 15,220 $ 13,556 Sales or transfers between geographic areas: Domestic operations $ 6,566 $ 5,097 Income before income taxes: Domestic operations $ 24,494 $ 14,280 Foreign subsidiaries $ (1,474 ) $ 268 Net Income (Loss) attributable to Oil-Dri: Domestic operations $ 20,208 $ 12,456 Foreign subsidiaries $ (1,308 ) $ 155 Identifiable assets: Domestic operations $ 223,296 $ 195,032 Foreign subsidiaries $ 12,586 $ 10,195 Included within identifiable assets for our foreign subsidiaries is cash held at foreign banks of $3,038,000 as of July 31, 2020. Sales to Walmart, our largest customer, are included in our Retail and Wholesale Products Group. The percentage of consolidated net sales and net accounts receivable attributed to Walmart are shown in the table below: 2020 2019 Net sales for the years ended July 31 19% 20% Net accounts receivable as of July 31 18% 26% There are no other customers with sales equal to or greater than 10% of our total sales. |
DEBT Level 1 (Notes)
DEBT Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2020 | |
Notes Payable [Abstract] | |
Debt | DEBT The composition of notes payable is as follows as of July 31 (in thousands): 2020 2019 Senior notes payable in annual installments on August 1. Final payment made in fiscal year 2020. Interest was payable semi-annually at an annual rate of 3.96%. $ — $ 6,167 Amended and Restated Note Purchase and Private Shelf Agreement. Annual principal installments on May 15: $1,000 in each fiscal year 2021 through 2030. Interest is payable semi-annually at an annual rate of 3.95% 10,000 — Less current maturities of notes payable (1,000 ) (3,083 ) Less unamortized debt issuance costs $ (152 ) $ (32 ) Noncurrent notes payable $ 8,848 $ 3,052 We issued senior promissory notes in November 2010 for $18,500,000 . The note agreement provided that the proceeds could be used to fund future principal payments on debt, acquisitions, stock repurchases, capital expenditures and working capital purposes. The note agreement contained restrictions against certain activities, among other things and under various conditions, as well as financial covenants, including a minimum fixed charges coverage ratio and a minimum consolidated debt ratio. As further described below, these notes were amended in May 2020 and paid in full in July 2020. On May 15, 2020 (the “Effective Date”), we entered into an Amended and Restated Note Purchase and Private Shelf Agreement (the “Amended Note Agreement”) with PGIM, Inc. (“Prudential”) and certain existing noteholders and purchasers affiliated with Prudential named therein. The Amended Note Agreement amends and restates the Note Agreement between Oil-Dri, Prudential and certain existing noteholders named therein, dated as of November 12, 2010 (the “Prior Note Agreement”), under which our 3.96% Series A Senior Notes (the “Series A Notes”) were previously issued in an original aggregate principal amount of $18,500,000 . Pursuant to the Amended Note Agreement, (i) the Series A Notes, in an aggregate principal amount of $3,100,000 as of immediately prior to the Effective Date, were paid in full in July 2020 and (ii) we issued $10,000,000 in aggregate principal amount of our 3.95% Series B Senior Notes due May 15, 2030 (the “Series B Notes”). In addition, the Amended Note Agreement provided us with the ability to request, from time to time until May 15, 2023 (or such earlier date as provided for in the Amended Note Agreement), that Prudential affiliate(s) purchase, at Prudential’s discretion and on an uncommitted basis, additional senior unsecured notes of Oil-Dri (the “Shelf Notes,” and collectively with the Series A Notes and Series B Notes, the “Notes”) in an aggregate principal amount of up to $75,000,000 minus the aggregate principal amount of Notes then outstanding and Shelf Notes that have been accepted for purchase. Interest payable on any Shelf Note agreed to be purchased under the Amended Note Agreement will be at a rate determined by Prudential and will mature not more than fifteen years after the date of original issue of such Shelf Note. Like the Prior Note Agreement, the Amended Note Agreement is guaranteed, on an unsecured basis, by certain U.S. subsidiaries of Oil-Dri, and contains customary covenants, including but not limited to, limitations on our and certain of our subsidiaries’ ability to incur indebtedness, incur liens, engage in mergers, and sell or transfer assets and stock, as well as financial covenants, including a minimum fixed charges coverage ratio and consolidated debt ratio that remain the same as those contained in the Prior Note Agreement. Upon the occurrence of certain events of default, our obligations under the Amended Note Agreement may be accelerated. Such events of default include payment defaults, covenant defaults and other enumerated defaults. We have a credit agreement with BMO Harris that expires on January 31, 2024 . The agreement provides for a $45,000,000 unsecured revolving credit agreement, including a maximum of $10,000,000 for letters of credit. Under the credit agreement, we may select a variable rate based on either BMO Harris’ prime rate or a LIBOR-based rate, plus a margin which varies depending on our debt to earnings ratio, or a fixed rate as agreed between us and BMO Harris. As of July 31, 2020 , the variable rates would have been 3.50% for the BMO Harris’ prime-based rate or 1.50% for the LIBOR-based rate. As of July 31, 2020 and 2019 , there were no outstanding borrowings under this credit agreement. However, we had outstanding letters of credit of $1,284,000 as of July 31, 2020 under this agreement. The credit agreement contains restrictive covenants that, among other things and under various conditions, limit our ability to incur additional indebtedness or to dispose of assets. The agreement also requires us to maintain a minimum fixed coverage ratio, a minimum consolidated net worth and a minimum consolidated debt ratio. Our debt agreements also contain provisions such that if we default on one debt agreement, the others will automatically default. If we default on any guaranteed debt with a balance greater than $1,000,000 , our unsecured revolving credit agreement with BMO Harris will be considered in default. If we default on any debt with a balance greater than $5,000,000 we will also be considered in default with the senior promissory notes. We were in compliance with all restrictive covenants and limitations as of July 31, 2020 . The following is a schedule by fiscal year of future principal maturities of notes payable as of July 31, 2020 (in thousands): 2021 $ 1,000 2022 1,000 2023 1,000 2024 1,000 2025 1,000 |
FINANCIAL INSTRUMENTS Level 1 (
FINANCIAL INSTRUMENTS Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2020 | |
FAIR VALUE [Abstract] | |
Fair Value | FINANCIAL INSTRUMENTS Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized into one of three categories based on the lowest level of input that is significant to the fair value measurement. Categories in the hierarchy are as follows: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs for similar assets or liabilities or valuation models whose inputs are observable, directly or indirectly. Level 3: Unobservable inputs. Cash equivalents are classified as Level 1 of the fair value hierarchy because they were valued using quoted market prices in active markets. Cash equivalents were $6,000 and $26,000 as of July 31, 2020 and 2019 , respectively. These cash instruments are primarily money market funds and are included in cash and cash equivalents on the Consolidated Balance Sheets. Accounts receivable and accounts payable balances on the Consolidated Balance Sheets approximate their fair values as of July 31, 2020 and 2019 due to the short maturity and nature of those balances. Notes payable on the Consolidated Balance Sheets are carried at the face amount of future maturities. The estimated fair value of notes payable was approximately $11,631,000 as of July 31, 2020 and $6,357,000 as of July 31, 2019 . The fair value was estimated using the exit price notion of fair value and is classified as Level 2. The increase in fair value is attributable to the Amended and Restated Note Purchase and Private Shelf Agreement entered into in May 2020. See Note 3 of the Notes to the Consolidated Financial Statements for further information about the new debt. We apply fair value techniques on at least an annual basis associated with: (1) valuing potential impairment loss related to goodwill, trademarks and other indefinite-lived intangible assets and (2) valuing potential impairment loss related to long-lived assets. See Note 1 of the Notes to Consolidated Financial Statements for further information about goodwill and other intangible assets. Concentration of Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and accounts receivable. Our cash is held in banks which are covered by the Federal Deposit Insurance Corporation; however, our cash balances are in excess of the maximum amount that is insured. Concentrations of credit risk with respect to accounts receivable are subject to the financial condition of certain major customers, principally the customer referred to in Note 2 |
INCOME TAXES Level 1 (Notes)
INCOME TAXES Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2020 | |
INCOME TAXES [Abstract] | |
Income Taxes | INCOME TAXES The provision for income tax expense by fiscal year consists of the following (in thousands): 2020 2019 Current Federal $ 3,768 $ (529 ) Foreign 5 (5 ) State 999 1,416 Current Income Tax Total 4,772 882 Deferred Federal (610 ) 1,344 Foreign (3 ) 113 State 121 (406 ) Deferred Income Tax Total (492 ) 1,051 Total Income Tax Expense $ 4,280 $ 1,933 Principal reasons for variations between the statutory federal rate and the effective rates by fiscal year were as follows: 2020 2019 U.S. federal income tax rate 21.0 % 21.0 % Depletion deductions allowed for mining (4.8 ) (8.2 ) State income tax expense, net of federal tax expense 4.3 2.5 Difference in effective tax rate of foreign subsidiaries 1.2 0.2 Prior year income taxes (1.0 ) (1.9 ) Other (2.1 ) (0.3 ) Effective income tax rate 18.6 % 13.3 % The Consolidated Balance Sheets included the following tax effects of cumulative temporary differences as of July 31 (in thousands): ` 2020 2019 Assets Liabilities Assets Liabilities Depreciation $ — $ 3,926 $ — $ 3,995 Deferred compensation 1,779 — 2,121 — Postretirement benefits 3,293 — 6,100 — Lease right of use assets — 2,534 — — Lease liabilities 2,918 — — — Allowance for doubtful accounts 178 — 81 — Deferred marketing expenses — 194 — 326 Other assets — 9 390 — Accrued expenses 4,131 — 2,076 — Tax credits 147 — 250 — Amortization 48 — 166 — Inventories 343 — 264 — Depletion — 173 — 173 Stock-based compensation 987 — 556 — Reclamation 447 — 392 — Other assets – foreign 790 — 585 — Valuation allowance (923 ) — (732 ) — Total deferred taxes $ 14,138 $ 6,836 $ 12,249 $ 4,494 Deferred taxes for postretirement benefits were also affected by employer contributions and the freeze of our pension plan that significantly reduced our pension liability. See Note 8 of the Notes to the Consolidated Financial Statements for further information about postretirement benefits. Deferred taxes for lease right of use assets and liabilities were recorded upon the implementation of ASC 842, Leases , on August 1, 2019. See Notes 1 and 11 of the Notes to the Consolidated Financial Statements for further information about leases. Deferred taxes for accrued expenses reflected a higher accrual for the annual discretionary bonus. We recorded a valuation allowance of $923,000 and $732,000 as of July 31, 2020 and July 31, 2019 , respectively, for the amount of the deferred tax benefit related to our foreign net operating loss carryforwards since we believe it is unlikely we will realize the benefit of these tax attributes in the future. As of July 31, 2020 , we have total net operating loss carryforwards from state jurisdictions of approximately $2,000,000 . The carryforward expiration dates vary by state. No valuation allowance has been established for these carryforwards since we expect our future profitability will allow us to fully realize these tax benefits. Our foreign subsidiaries in the United Kingdom and China have not generated any untaxed foreign income, therefore we have not provided for any related income taxes. We had no material liability for unrecognized tax benefits based on tax positions related to the current and prior fiscal years as of July 31, 2020 and 2019 ; correspondingly, no related interest and penalties were recognized as income tax expense and there were no accruals for such items in either of these fiscal years. We are subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. We have no income tax returns under examination as of July 31, 2020 and federal tax returns for fiscal years 2018 and 2019 remain open for examination. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from three to five years. The state impact of any federal income tax changes remains subject to examination by various states for a period of up to one year after formal notification to the states. There are a limited number of open state and local income tax audits in which no material issues have been preliminarily identified. There are no material open or unsettled foreign income tax audits. We believe our accrual for tax liabilities is adequate for all open audit years. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2020 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | The following table summarizes the changes in accumulated other comprehensive income by component (in thousands): Pension and Postretirement Health Benefits Cumulative Translation Adjustment Total Accumulated Other Comprehensive (Loss) Income Balance as of July 31, 2018 $ (10,384 ) $ (231 ) (10,615 ) Other comprehensive (loss) income before reclassifications, net of tax (5,089 ) a) 83 (5,006 ) Amounts reclassified from accumulated other comprehensive income, net of tax 582 b) — 582 Net current-period other comprehensive (loss) income, net of tax (4,507 ) 83 (4,424 ) Balance as of July 31, 2019 $ (14,891 ) $ (148 ) $ (15,039 ) Other comprehensive loss before reclassifications, net of tax (4,431 ) a) (112 ) (4,543 ) Amounts reclassified from accumulated other comprehensive income, net of tax 758 b) — 758 Curtailment/Settlement on Pension Plan 6,570 c) — 6,570 Net current-period other comprehensive income (loss), net of tax 2,897 (112 ) 2,785 Balance as of July 31, 2020 $ (11,994 ) $ (260 ) $ (12,254 ) a) Amounts are net of taxes of $ 1,359,000 and $1,607,000 in fiscal years 2020 and 2019 , respectively, and are included in Other Comprehensive Loss. b) Amounts are net of taxes of $242,000 and $185,000 in fiscal years 2020 and 2019 , respectively. Amounts are included in the components of net periodic benefit cost for the pension and postretirement health plans. c) Amount is net of taxes of $2,075,000 in fiscal year 2020 . Amounts are included in the components of net periodic benefit cost for the pension and postretirement health plans. See Note 8 of the Notes to the Consolidated Financial Statements for further information about pension and postretirement health benefits. |
STOCK-BASED COMPENSATION (Notes
STOCK-BASED COMPENSATION (Notes) | 12 Months Ended |
Jul. 31, 2020 | |
STOCK-BASED COMPENSATION [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Oil-Dri Corporation of America 2006 Long Term Incentive Plan (as amended, the “2006 Plan”) permits the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other stock-based and cash-based awards. Our employees and outside directors are eligible to receive grants under the 2006 Plan. The total number of shares of stock subject to grants under the 2006 Plan may not exceed 1,219,500 . As of July 31, 2020 , there were 370,836 shares available for future grants under this plan. RESTRICTED S TOCK All non-vested restricted stock as of July 31, 2020 was issued under the 2006 Plan with vesting periods generally from two to five years. The fair value of restricted stock was determined by the closing market price of our Common Stock on the date of grant multiplied by the number of shares granted. A summary of restricted stock transactions under the plans is shown below. Number of Shares (in thousands) Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Unamortized Expense (in thousands) Non-vested restricted stock outstanding at July 31, 2018 178 $ 32.74 1.7 $ 3,050 Granted 321 $ 32.89 Vested (61 ) $ 31.90 Forfeited (24 ) $ 30.85 Non-vested restricted stock outstanding at July 31, 2019 414 $ 33.09 4.5 $ 10,474 Granted 26 $ 33.57 Vested (44 ) $ 32.53 Forfeited (6 ) $ 32.46 Non-vested restricted stock outstanding at July 31, 2020 390 $ 33.19 4.0 $ 7,784 Stock-based compensation for restricted stock of $2,560,000 and $1,834,000 , net of related tax effect, was recognized in fiscal years 2020 and 2019 , respectively. The total restricted stock compensation related tax benefit was $808,000 and $579,000 in fiscal years 2020 and 2019 , respectively. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2020 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
Pension and Other Postretirement Benefits | PENSION AND OTHER POSTRETIREMENT BENEFITS The Oil-Dri Corporation of America Pension Plan (“Pension Plan”) is a defined benefit pension plan for eligible salaried and hourly employees. Pension benefits are based on a formula of years of credited service and levels of compensation or stated amounts for each year of credited service. On January 9, 2020, we amended the Pension Plan to freeze participation, all future benefit accruals and accrual of benefit service, including consideration of compensation increases, effective March 1, 2020. Consequently, the Pension Plan is closed to new participants and current participants will no longer earn additional benefits on or after March 1, 2020. The amendment of the Pension Plan triggered a pension curtailment, which required a remeasurement of the Pension Plan's obligation. The remeasurement resulted in a decrease in the benefit obligation of approximately $6,632,000 , which was recorded in Other Comprehensive Income, net of taxes of $1,592,000 in the second quarter of fiscal year 2020. During the third quarter of fiscal 2020 we offered terminated participants with vested benefits who have not yet begun receipt of benefits under the Plan the opportunity to receive their pension benefits in a single payment (the “Lump Sum Option”). We made payments in the fourth quarter of fiscal year 2020 to those participants who elected the Lump Sum Option by the May 15, 2020 election deadline. The settlement expense was $2,012,000 and was recorded net of tax in Other, net in the Consolidated Statements of Operation. A postretirement health benefits plan is also provided to domestic salaried employees who meet specific age, participation and length of service requirements at the time of retirement. Eligible employees may elect to continue their health care coverage under the Oil-Dri Corporation of America Employee Benefits Plan until the date certain criteria are met, including attaining the age of Medicare eligibility. We have the right to modify or terminate the postretirement health benefit plan at any time. A 401(k) savings plan is maintained under which we match a portion of employee contributions. This plan is available to essentially all domestic employees following a specific number of days of employment. Our contributions to this plan, and to similar plans maintained by our foreign subsidiaries, were $2,035,000 and $764,000 for fiscal years 2020 and 2019 , respectively. During fiscal year 2020, we changed the percentage of employer matching contributions from 50% of every employee dollar contributed up to 4% of earnings to 100% of every employee dollar contributed up to 6% of earnings. Obligations and Funded Status The following tables provide a reconciliation of changes in the plans’ benefit obligations, asset fair values and funded status by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2020 2019 2020 2019 Change in benefit obligation : Benefit obligation, beginning of year $ 61,553 $ 54,267 $ 2,958 $ 2,667 Service cost 1,096 1,626 116 105 Interest cost 1,900 2,114 82 97 Actuarial loss 8,570 5,125 247 97 Benefits paid (1,663 ) (1,579 ) (112 ) (8 ) Curtailments (6,632 ) — — — Settlements (7,544 ) — — — Benefit obligation, end of year 57,280 61,553 3,291 2,958 Change in plan assets: Fair value of plan assets, beginning of year 40,725 40,971 — — Actual return on plan assets 5,816 1,333 — — Employer contribution 8,000 — 112 8 Benefits paid (1,663 ) (1,579 ) (112 ) (8 ) Settlements (7,544 ) — — — Fair value of plan assets, end of year 45,334 40,725 — — Funded status, recorded in Consolidated Balance Sheets $ (11,946 ) $ (20,828 ) $ (3,291 ) $ (2,958 ) See “Cash Flows” below for further information about employer contributions and benefits payments. The accumulated benefit obligation for the Pension Plan was $57,280,000 and $54,696,000 as of July 31, 2020 and July 31, 2019, respectively. The following table shows amounts recognized in the Consolidated Balance Sheets as of July 31 (in thousands): Pension Benefits Postretirement Health Benefits 2020 2019 2020 2019 Deferred income taxes $ 2,443 $ 5,346 $ 850 $ 754 Other current liabilities $ — $ — $ (97 ) $ (65 ) Other noncurrent liabilities $ (11,946 ) $ (20,828 ) $ (3,194 ) $ (2,893 ) Accumulated other comprehensive loss – net of tax: Net actuarial loss $ 11,642 $ 14,731 $ 352 $ 184 Prior service cost (income) $ — $ — $ — $ (24 ) Benefit Costs and Amortizations The following table shows the components of the net periodic pension and postretirement health benefit costs by fiscal year (in thousands): Pension Cost Postretirement Health Benefit Cost 2020 2019 2020 2019 Service cost $ 1,096 $ 1,626 $ 116 $ 105 Interest cost 1,900 2,114 82 97 Expected return on plan assets (2,790 ) (2,809 ) — — Amortization of: Prior service costs (income) — 2 (6 ) (6 ) Other actuarial loss 1,005 771 — — Settlement cost 2,012 — — — Net periodic benefit cost $ 3,223 $ 1,704 $ 192 $ 196 The following table shows amounts, net of tax, that are recognized in other comprehensive income by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2020 2019 2020 2019 Net actuarial loss $ 4,243 $ 5,016 $ 188 $ 73 Amortization of: Prior service (cost) income — (1 ) 5 5 Amortization of actuarial loss (763 ) (586 ) — — Curtailment/Settlement $ (6,570 ) $ — $ — $ — Total recognized in other comprehensive (income) loss $ (3,090 ) $ 4,429 $ 193 $ 78 The following table shows amortization amounts, net of tax, expected to be recognized in fiscal year 2021 in accumulated other comprehensive income (in thousands): Amortization of: Pension Benefits Postretirement Health Benefits Net actuarial loss $ 786 $ 11 Prior service income — (5 ) Total to be recognized as other comprehensive loss (income) $ 786 $ 6 Cash Flows We have funded the Pension Plan based upon actuarially determined contributions that take into account the amount deductible for income tax purposes, the normal cost and the minimum contribution required and the maximum contribution allowed under applicable regulations. During fiscal 2020, we made two voluntary contributions for $5,000,000 and $3,000,000 in excess of the minimum required amount. The first contribution was made within eight and one-half months after the end of our fiscal year 2019 and therefore was deductible for our 2019 tax year. The voluntary contributions also improved our funded status and contributed to a lower net periodic benefit expense. We do not expect to make a contribution to the Pension Plan in fiscal year 2021 . The postretirement health plan is an unfunded plan. Our policy is to pay health insurance premiums and claims from our assets. The following table shows the estimated future benefit payments by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2021 $ 1,743 $ 115 2022 $ 1,794 $ 98 2023 $ 1,798 $ 121 2024 $ 1,842 $ 191 2025 $ 1,952 $ 234 2026-30 $ 11,484 $ 1,385 Assumptions Our pension benefit and postretirement health benefit obligations and the related effects on operations are calculated using actuarial models. Critical assumptions that are important elements of plan expenses and asset/liability measurements include discount rate and expected return on assets for the Pension Plan and health care cost trend for the postretirement health plan. We evaluate these critical assumptions at least annually. Other assumptions involving demographic factors such as retirement age, mortality and turnover are evaluated periodically and are updated to reflect our experience and to meet regulatory requirements. Actual results in any given year will often differ from actuarial assumptions because of economic and other factors. The assumptions used in the previous calculations by fiscal year were as follows: Pension Benefits Postretirement Health Benefits 2020 2019 2020 2019 Discount rate for net periodic benefit costs 3.35% 4.04% 2.93% 3.81% Discount rate for year-end obligations 2.14% 3.35% 1.63% 2.93% Rate of increase in compensation levels for net periodic benefit costs —% 3.50% —% —% Rate of increase in compensation levels for year-end obligations —% 3.50% —% —% Long-term expected rate of return on assets 7.00% 7.00% —% —% The discount rate was based on the FTSE Pension Discount Curve to determine separately for the Pension Plan and the postretirement health plan, the single equivalent rate that would yield the same present value as the specific plan’s expected cash flows. Our expected rate of return on Pension Plan assets is determined by our asset allocation, our historical long-term investment performance, our estimate of future long-term returns by asset class (using input from our actuaries, investment managers and investment advisors), and long-term inflation assumptions. For fiscal year 2020 , the medical cost trend assumption used for the postretirement health benefit cost was 7.2% . The graded trend rate is expected to decrease to an ultimate rate of 4.5% in fiscal year 2038 . The following table reflects the effect on postretirement health costs and accruals in fiscal year 2020 of a one-percentage point change in the assumed health care cost trend (in thousands): One-Percentage Point Increase One-Percentage Point Decrease Effect on total service and interest cost $27 $(23) Effect on accumulated postretirement benefit obligation $337 $(297) Pension Plan Assets The investment objective for the Pension Plan assets is to optimize long-term return at a moderate level of risk in order to secure the benefit obligations to participants at a reasonable cost. To reach this goal, our investment structure includes various asset classes, asset allocations and investment management styles that, in total, have a reasonable likelihood of producing a sufficient level of overall diversification that balances expected return with expected risk over the long-term. The Pension Plan does not invest directly in Company stock. We measure and monitor the plan’s asset investment performance and the allocation of assets through quarterly investment portfolio reviews. Investment performance is measured by absolute returns, returns relative to benchmark indices and any other appropriate basis of comparison. The targeted allocation percentages of plan assets is shown below for fiscal year 2021 and the actual allocation as of July 31: Asset Allocation Target fiscal 2021 2020 2019 Cash and accrued income 2% 1% —% Fixed income 38% 68% 42% Equity 60% 31% 58% In anticipation of the Lump Sum Option payments we adjusted our asset allocation in fiscal year 2020 and plan to revert back to our historical asset allocations in fiscal year 2021. The following table sets forth by level, within the fair value hierarchy, the Pension Plan's assets carried at fair value (in thousands): Fair Value At July 31, 2020 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Asset Class Cash and cash equivalents (a) $ 557 $ 557 $ — Equity securities (b) : U.S. companies 9,401 2,093 7,308 International companies 495 495 — Equity securities - international mutual funds: Developed market (c) 2,867 — 2,867 Emerging markets (d) 1,022 — 1,022 Commodities (e) — — — Fixed Income: U.S. Treasuries 3,014 — 3,014 Debt securities (f) 10,131 — 10,131 Government sponsored entities (g) 5,131 — 5,131 Multi-strategy bond fund (h) 10,547 — 10,547 Money market fund (i) 486 — 486 Other (j) 1,683 — 1,683 Total $ 45,334 $ 3,145 $ 42,189 Fair Value At July 31, 2019 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Asset Class Cash and cash equivalents (a) $ 66 $ 66 $ — Equity securities (b) : U.S. companies 13,775 4,147 9,628 International companies 2,609 2,609 — Equity securities - international mutual funds: Developed market (c) 5,275 — 5,275 Emerging markets (d) 1,141 — 1,141 Commodities (e) 637 — 637 Fixed Income: U.S. Treasuries 3,273 — 3,273 Debt securities(f) 8,103 — 8,103 Government sponsored entities (g) 2,087 — 2,087 Multi-strategy bond fund (h) 813 — 813 Money market fund (i) 557 — 557 Other (j) 2,389 — 2,389 Total $ 40,725 $ 6,822 $ 33,903 (a) Cash and cash equivalents consists of highly liquid investments which are traded in active markets. (b) This class represents equities traded on regulated exchanges, as well as funds that invest in a portfolio of such stocks. (c) These mutual funds seek long-term capital growth by investing no less than 80% of their assets in stocks of non- U.S. companies that are primarily in developed markets, but also may invest in emerging and less developed markets. (d) These mutual funds seek to track the performance of a benchmark index that measures the investment return of stock issued by companies located in emerging market countries. (e) These investments seek attractive total return by investing primarily in a diversified portfolio of commodity futures contracts and fixed income investments. (f) This class includes bonds and loans of U.S. and non-U.S. corporate issuers from diverse industries and bonds of domestic and foreign municipalities. (g) This class represents a beneficial ownership interest in a pool of single-family residential mortgage loans. These investments are generally not backed by the full faith and credit of the United States government, except for securities valued at $289,000 in our portfolio as of July 31, 2020 and $377,000 as of July 31, 2019 . (h) This class invests at least 80% of its net assets in bonds and other fixed income instruments issued by governmental or private-sector entities. More than 50% of its net assets are invested in mortgage-backed securities. The fund may invest up to 33 1/3% of its net assets in high-yield bonds, bank loans and assignments and credit default swaps. (i) These money market mutual funds seek to provide current income consistent with liquidity and stability of principal by investing in a diversified portfolio of high quality, short-term, dollar-denominated debt securities. These funds may include securities issued or guaranteed as to principal and interest by the U.S. government or its agencies, short-term securities issued by domestic or foreign banks, domestic and dollar-denominated foreign commercial papers, and other short-term corporate obligations and obligations issued or guaranteed by one or more foreign governments. (j) This class includes funds that use a number of other strategies, including arbitrage, to obtain long-term positive returns. The portfolio of instruments may include equities, debt securities, real estate properties, warrants, options, swaps, future contracts, forwards or other types of derivative instruments. |
DEFERRED COMPENSATION Level 1 (
DEFERRED COMPENSATION Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2020 | |
DEFERRED COMPENSATION [Abstract] | |
Deferred Compensation | DEFERRED COMPENSATION Oil-Dri's deferred compensation plans permit directors and certain management employees to defer portions of their compensation and to earn interest on the deferred amounts. Participants have deferred $266,000 and $418,000 into these plans in fiscal years 2020 and 2019 , respectively. We recorded $171,000 and $204,000 of interest expense associated with these plans in fiscal years 2020 and 2019 , respectively. Payments to participants were $440,000 and $1,144,000 in fiscal years 2020 and 2019 , respectively, and the total liability recorded for deferred compensation was $4,017,000 and $3,560,000 as of July 31, 2020 and 2019 , respectively. The Oil-Dri Corporation of America Annual Incentive Plan provides certain executives with the opportunity to receive a deferred executive bonus award if certain financial goals are met. A total of $1,352,000 and $513,000 were awarded to certain executives for fiscal years 2020 and 2019 , respectively. These awards will vest and accrue interest over a three -year period. Our deferred compensation plans are unfunded. We fund these benefits when payments are made, and the timing and amount of the payments are determined according to the plans' provisions and, for certain plans, according to individual employee agreements. Our SERP provides certain retired participants in the Pension Plan with the amount of benefits that would have been provided under the Pension Plan but for: (1) the limitations on benefits imposed by Section 415 of the Internal Revenue Code (“Code”), and/or (2) the limitation on compensation for purposes of calculating benefits under the Pension Plan imposed by Section 401(a)(17) of the Code. The SERP is unfunded and benefits will be funded when payments are made. The SERP liability is actuarially determined at the end of each fiscal year using assumptions similar to those used for the Pension Plan, see Note 8 of the Notes to the Consolidated Financial Statements. The SERP liability was $1,447,000 and $2,708,000 as of July 31, 2020 and July 31, 2019 , respectively. We recorded expense related to the SERP of $34,000 and $539,000 in fiscal years 2020 and 2019 , respectively. On January 9, 2020, we amended the SERP to freeze participation and any excess benefit, supplemental benefit or additional benefit effective March 1, 2020. Consequently, the SERP is closed to new participants and current participants no longer earn additional benefits on or after March 1, 2020. The amendment of the SERP triggered a curtailment which required a remeasurement of the SERP's obligation. The remeasurement resulted in a decrease in the SERP liability and recognition of a curtailment gain of approximately $1,296,000 , which has been recorded in SG&A. Subsequent to the curtailment, the SERP was terminated effective June 30, 2020. Any payments that would otherwise have been payable pursuant to the SERP plan on or after June 30, 2021, will instead be paid in the form of one lump sum, with such lump sum payable no earlier than June 30, 2021 and no later than June 8, 2022. |
OTHER CONTINGENCIES Level 1 (No
OTHER CONTINGENCIES Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2020 | |
OTHER CONTINGENCIES [Abstract] | |
Other Contingencies Disclosure | OTHER CONTINGENCIES |
LEASES Level 1 (Notes)
LEASES Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2020 | |
Leases [Abstract] | |
Leases of Lessor Disclosure | LEASES We have operating leases primarily for real estate properties, including corporate headquarters, customer service and sales offices, manufacturing and packaging facilities, warehouses, and research and development facilities, as well as for rail tracks, railcars and office equipment. Certain of our leases for a shared warehouse and office facility, rail track and railcars have options to extend which we are reasonably certain we will exercise and, accordingly, have been considered in the lease term used to recognize our ROU assets and lease liabilities. To determine the present value of the lease liability, we use an incremental borrowing rate, which is defined as the rate of interest that the Company would have to pay to borrow (on a collateralized basis over a similar term) an amount equal to the lease payments in similar economic environments. Further information about our accounting policy for leases is included in Note 1 of the Notes to the Consolidated Financial Statements. We have no material finance leases, and variable costs for operating leases are immaterial. Operating lease costs are included in Cost of Sales or SG&A expenses based on the nature of the lease. The following table summarizes total lease costs for our operating leases (in thousands): For the Twelve Months Ended July 31, 2020 Operating Lease Cost Operating lease cost $ 2,219 Short-term operating lease cost 788 Supplemental cash flow information related to leases was as follows (in thousands): For the Twelve Months Ended July 31, 2020 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,878 Operating lease ROU assets and operating lease liabilities are separately presented on the Consolidated Balance Sheet, excluding leases with an initial term of twelve months or less. Other supplemental balance sheet information related to leases was as follows: For the Twelve Months Ended July 31, 2020 Weighted-average remaining lease term - operating leases 9.4 years Weighted-average discount rate - operating leases 3.87% The following table summarizes scheduled minimum future lease payments due within twelve months for operating leases with terms longer than one year for which cash flows are fixed and determinable as of July 31, 2020 (in thousands): 2021 $ 2,552 2022 2,076 2023 1,106 2024 965 2025 885 Thereafter 6,131 Total 13,715 Less: imputed interest (2,410 ) Net lease obligation $ 11,305 Rent expense for the fiscal year ended July 31, 2019 was $2,873,000 . The following table summarizes scheduled minimum future lease payments due within twelve months for operating leases with terms longer than one year for which cash flows are fixed and determinable as of July 31, 2019 (in thousands): 2020 $ 2,255 2021 1,640 2022 1,513 2023 1,038 2024 899 Thereafter 7,422 |
SUBSEQUENT EVENTS Level 1 (Note
SUBSEQUENT EVENTS Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Management has evaluated subsequent events through the date the financial statements were issued. Based on our evaluation no events have occurred that would require recognition in the Consolidated Financial Statements or disclosure in the Notes to the Consolidated Financial Statements. |
RELATED PARTY TRANSACTIONS (Not
RELATED PARTY TRANSACTIONS (Notes) | 12 Months Ended |
Jul. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | RELATED PARTIES One member of our Board of Directors retired from the role of President and Chief Executive Officer of a customer of ours on September 28, 2019 and is currently party to a post-employment consulting agreement with the customer. Total net sales to that customer, including sales to subsidiaries of that customer, were $388,000 and $462,000 for fiscal years 2020 and 2019 , respectively. There were no outstanding accounts receivable due from that customer, and its subsidiaries, as of July 31, 2020 and $10,000 outstanding as of July 31, 2019 . One member of our Board of Directors is currently the President and Chief Executive Officer of a vendor of ours. Total payments to this vendor for fees and cost reimbursements were $420,000 and $271,000 for fiscal years 2020 and 2019 , respectively. There were no outstanding amounts due to that vendor as of July 31, 2020 or July 31, 2019 . |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Level 2 (Policies) | 12 Months Ended |
Jul. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Principles of Consolidation | P RINCIPLES OF C ONSOLIDATION The Consolidated Financial Statements include the accounts of Oil-Dri Corporation of America and its subsidiaries. All significant intercompany balances and transactions have been eliminated from the Consolidated Financial Statements. |
Management Use of Estimates | M ANAGEMENT U SE OF E STIMATES The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Our estimates and assumptions are revised periodically. Actual results could differ from these estimates. For more information see Critical Accounting Policies and Estimates in Item 7 “ Management's Discussion and Analysis of Financial Condition and Results of Operations. ” In March 2020, the World Health Organization declared COVID-19 a pandemic. Despite the adverse effects of COVID-19 on the overall economy, we have not experienced a significant decline in customer orders and sales in fiscal year 2020. However, the effects of COVID-19 are unprecedented, and therefore we are unable to ascertain the effects on our sales and net earnings in the future. |
Cash and Cash Equivalents | C ASH AND C ASH E QUIVALENTS Cash equivalents are highly liquid investments with maturities of three months or less. |
Trade Receivables | T RADE R ECEIVABLES We recognize trade receivables when the risk of loss and title pass to the customer. We record an allowance for doubtful accounts based on our historical experience and a periodic review of our accounts receivable, including a review of the overall aging of accounts, consideration of customer credit risk and analysis of facts and circumstances about specific accounts. A customer account is determined to be uncollectible when it is probable that a loss will be incurred after we have completed our internal collection procedures, including termination of shipments, direct customer contact and formal demand of payment. We retain outside collection agencies to facilitate our collection efforts. Past due status is determined based on contractual terms and customer payment history. |
Inventories | I NVENTORIES The composition of inventories was as follows as of July 31 (in thousands): 2020 2019 Finished goods $ 14,500 $ 13,957 Packaging 4,587 5,681 Other 4,806 4,525 Inventories $ 23,893 $ 24,163 Inventories are valued at the lower of cost (first-in, first-out) or net realizable value. Inventory costs include the cost of raw materials, packaging supplies, labor and other overhead costs. We performed a detailed review of our inventory items to determine if an obsolescence reserve adjustment was necessary. The review surveyed all of our operating facilities and sales groups to ensure that both historical issues and new market trends were considered. The obsolescence reserve not only considered specific items, but also took into consideration the overall value of the inventory as of the balance sheet date. We recorded inventory obsolescence reserves of approximately $926,000 and $704,000 as of July 31, 2020 and 2019 , respectively. The higher obsolescence reserve and lower packaging inventories are attributed to our focus on inventory management and enhanced data available from our ERP system. Other inventories increased mainly due to higher levels of raw and purchased materials. |
Translation of Foreign Currencies | T RANSLATION OF F OREIGN C URRENCIES Assets and liabilities of foreign subsidiaries, where the local currency is the functional currency, are translated to U.S. Dollars at the exchange rates in effect at period end. Income statement items are translated at the average exchange rate on a monthly basis. Resulting translation adjustments are recorded as a separate component of stockholders’ equity. |
Intangibles and Goodwill | I NTANGIBLES AND G OODWILL We amortize most of our intangibles on a straight-line basis over periods ranging from 4 to 20 years. Our customer list intangible asset is amortized at an accelerated amortization rate in the earlier years to reflect the expected pattern of decline in the related benefits over time. Intangible amortization was $804,000 in fiscal year 2020 and $862,000 in fiscal year 2019 . Some intangible assets were determined to have indefinite lives and are not amortized, specifically one acquired trademark recorded at $376,000 . Our estimated intangible amortization expense for the next five fiscal years is as follows (in thousands): 2021 $ 583 2022 $ 431 2023 $ 227 2024 $ 91 2025 $ 66 The weighted average amortization period of our intangibles subject to amortization is as follows (in years): Weighted Average Amortization Period Trademarks and patents 14.3 Customer list 3.3 Total intangible assets subject to amortization 5.9 We periodically review indefinite-lived intangibles and goodwill to assess for impairment. Our review is based on cash flow considerations and other approaches that require significant judgment with respect to volume, revenue, expenses and allocations. Impairment occurs when the carrying value exceeds the fair value. Much of our goodwill cannot be specifically assigned to one of our operating segments because of the shared nature of our production facilities; however, for purposes of our most recent impairment analysis we estimated the goodwill allocation and assigned $5,489,000 to the Retail and Wholesale Products Group and $3,773,000 to the Business to Business Products Group. We performed our annual impairment testing in the fourth quarter of fiscal years 2020 and 2019 . There was no impairment required based on our analysis for fiscal years 2020 or 2019 . We will continue to consider the need to re-perform impairment testing throughout the year when circumstances such as unexpected adverse economic factors, unanticipated technological changes, competitive activities and acts by governments and courts indicate that an asset may become impaired. In addition, although we have not identified any triggering events relating to goodwill or our intangibles, the ultimate effects of COVID-19 could change this assessment in the future, as outlined under Item 1A, Risk Factors, discussed above. |
Overburden Removal and Mining Costs | O VERBURDEN R EMOVAL AND M INING C OSTS We surface mine sorbent minerals on property that we either own or lease as part of our overall operations. A significant part of our overall mining cost is incurred during the process of removing the overburden from the mine site, thus exposing the sorbent material used in a majority of our production processes. These stripping costs are treated as a variable inventory production cost and are included in cost of sales in the period they are incurred. Stripping costs included in cost of sales were approximately $1,722,000 and $2,430,000 for fiscal years 2020 and 2019 , respectively. Stripping costs decreased in fiscal year 2020 due to a decrease in fuel costs and repair costs. We defer and amortize the pre-production overburden removal costs associated with opening a new mine. $316,000 of pre-production overburden removal costs were deferred in fiscal year 2020. There were no pre-production overburden removal costs deferred in fiscal year 2019. Additionally, it is our policy to capitalize the purchase cost of land and mineral rights, including associated legal fees, survey fees and real estate fees. The costs of obtaining mineral rights, including legal fees and drilling expenses, are also capitalized. The amount of land and mineral rights included in land on the Consolidated Balance Sheets were approximately $13,570,000 and $2,165,000 , respectively, as of July 31, 2020 , and were $13,638,000 and $2,165,000 , respectively, as of July 31, 2019 . Pre-production development costs on new mines and any prepaid royalties that may be offset against future royalties due upon extraction of the mineral are also capitalized. Total pre-production costs, including the overburden removal costs deferred above, that were capitalized in fiscal year 2020 were $535,000 . No material capitalized pre-production development costs were recorded in fiscal year 2019 . Prepaid royalties included in current prepaid expenses and in non-current other assets on the Consolidated Balance Sheets were approximately $1,232,000 and $1,184,000 as of July 31, 2020 and 2019 , respectively. |
Reclamation | R ECLAMATION We perform ongoing reclamation activities during the normal course of our overburden removal. As overburden is removed from a mine site, it is hauled to previously mined sites and is used to refill older sites. This process allows us to continuously reclaim older mine sites and dispose of overburden simultaneously, therefore minimizing the costs associated with the reclamation process. On an annual basis we evaluate our potential reclamation liability in accordance with ASC 410, Asset Retirement and Environmental Obligations. The reclamation assets are depreciated over the estimated useful lives of the various mines. The reclamation liabilities are increased based on a yearly accretion charge over the estimated useful lives of the mines. |
Property, Plant and Equipment | P ROPERTY , P LANT AND E QUIPMENT Property, plant and equipment are generally depreciated using the straight-line method over their estimated useful lives which are listed below. Depreciation expense was $13,119,000 and $12,468,000 in fiscal years 2020 and 2019 , respectively. Major improvements and betterments are capitalized, while maintenance and repairs that do not extend the useful life of the applicable assets are expensed as incurred. Interest expense may also be capitalized for assets that require a period of time to get them ready for their intended use. There was no capitalized interest in fiscal years 2020 and 2019 . Years Buildings and leasehold improvements 3 - 40 Machinery and equipment Packaging 2 - 20 Processing 2 - 30 Mining and other 2 - 20 Office furniture and equipment 3 - 15 Vehicles 2 - 15 Property, plant and equipment are carried at cost on the Consolidated Balance Sheets and are reviewed for possible impairment on an annual basis or when circumstances indicate impairment that an asset may become impaired. We take into consideration idle and underutilized equipment and review business plans for possible impairment. When impairment is indicated, an impairment charge is recorded for the difference between the carrying value of the asset and its fair market value. No impairment was recorded in either fiscal year 2020 or 2019 |
Other Noncurrent Liabilities | O THER N ONCURRENT L IABILITIES On March 27, 2020, in response to the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into U.S. law. The CARES Act provides for, among other things, deferral of the employer portion of social security taxes incurred through the end of calendar 2020. As permitted by the CARES Act, we deferred approximately $864,000 in payroll taxes during the fiscal year ended July 31, 2020 and expect to defer the payment of payroll taxes each quarter for the remainder of calendar year 2020 to be paid equally in the fourth quarters of calendar years 2021 and 2022 representing approximately $2,100,000 in payroll taxes. |
Trade Promotions | T RADE P ROMOTIONS We routinely commit to one-time or ongoing trade promotion programs, primarily in our Retail and Wholesale Products Group. All such costs are netted against sales. We have accrued liabilities at the end of each period for the estimated expenses incurred but not yet paid for these programs. Promotional reserves are provided for sales incentives made directly to consumers, such as coupons, and sales incentives made to customers, such as slotting, discounts based on sales volume, cooperative marketing programs and other arrangements. We use judgment for estimates to determine our trade spending liabilities. We rely on our historical experience of trade spending patterns and that of the industry, current trends and forecast data. |
Advertising | A DVERTISING Advertising costs for the development of printed materials, television commercials, web-based digital banners, web-based social media and sales videos are deferred and expensed upon the first use of the materials, unless such amounts are immaterial. Costs paid for communicating advertising over a period of time, such as television air time, radio commercials and print media advertising space, are deferred and expensed on a pro-rata basis. All other advertising costs, including participation in industry conventions and shows and market research, are expensed when incurred. All advertising costs are part of selling, general and administrative expenses. Advertising expenses were approximately $9,674,000 and $6,909,000 in fiscal years 2020 and 2019 , respectively. |
Fair Value of Financial Instruments | F AIR V ALUE OF F INANCIAL I NSTRUMENTS Non-derivative financial instruments included in the Consolidated Balance Sheets are cash and cash equivalents and notes payable. These instruments, except for notes payable, were carried at amounts approximating fair value as of July 31, 2020 and 2019 . See Note 4 of the Notes to the Consolidated Financial Statements for additional information regarding the fair value of our financial instruments, including notes payable. |
Revenue Recognition | R EVENUE R ECOGNITION We recognize revenue when performance obligations under the terms of the contracts with customers are satisfied. Our performance obligation generally consists of the promise to sell finished products to wholesalers, distributors and retailers or consumers and our obligations have an original duration of one year or less. Control of the finished products are transferred upon shipment to, or receipt at, customers' locations, as determined by the specific terms of the contract. We have completed our performance obligation when control is transferred and we recognize revenue accordingly. Taxes collected from customers and remitted to governmental authorities are excluded from net sales. Sales returns and allowances are not material. We have an unconditional right to consideration under the payment terms specified in the contract upon completion of the performance obligation. We may require certain customers to provide payment in advance of product shipment. We recorded a liability for these advance payments of $247,000 and $259,000 as of July 31, 2020 and July 31, 2019 , respectively. This liability is reported in Other Accrued Expenses on the Consolidated Balance Sheets. Revenue recognized during fiscal year 2020 that was included in the liability for advance payments at the beginning of the year was $232,000 . |
Cost of Sales | C OST OF S ALES Cost of sales consists of all manufacturing costs, including depreciation and amortization related to assets used in the manufacturing and distribution process, inbound and outbound freight, inspection costs, purchasing costs associated with materials and packaging used in the production process and warehouse and distribution costs. |
Shipping and Handling Costs | S HIPPING AND H ANDLING C OSTS Shipping and handling costs are included in cost of sales and were approximately $39,865,000 and $47,717,000 for fiscal years 2020 and 2019 , respectively. The decrease in fiscal year 2020 relates to the decrease in freight due to lower transportation rates from improved truck availability. In addition, costs were higher in the first half of the prior fiscal year due to one-time events, including a greater number of product transfers between our plants and warehouses to support customer service during the implementation of our new ERP system on August 1, 2018 and disruptions due to Hurricane Michael. |
Selling, General and Administrative Expenses | S ELLING , G ENERAL AND A DMINISTRATIVE E XPENSES Selling, general and administrative expenses include salaries, wages and benefits associated with staff outside the manufacturing and distribution functions, all marketing related costs, any miscellaneous trade spending expenses not required to be included in net sales, research and development costs, depreciation and amortization related to assets outside the manufacturing and distribution process and all other non-manufacturing and non-distribution expenses. |
Research and Development | R ESEARCH AND D EVELOPMENT Research and development costs of approximately $2,765,000 and $3,202,000 were charged to expense as incurred for fiscal years 2020 and 2019 , respectively, and are recorded in selling, general and administrative expenses. |
Pension and Postretirement Benefit Costs | P ENSION AND P OSTRETIREMENT B ENEFIT C OSTS We provide a defined benefit pension plan for eligible salaried and hourly employees and we make contributions to fund the plan. We also provide a postretirement health benefit plan to domestic salaried employees who qualify under the plan’s provisions. The postretirement health benefit plan is unfunded. Our pension and postretirement health benefit plans are accounted for using actuarial valuations required by ASC 715, Compensation – Retirement Benefits . The funded status of our defined pension and postretirement health benefit plans are recognized on the Consolidated Balance Sheets. Changes in the funded status that arise during the period but are not recognized as components of net periodic benefit cost are recognized within other comprehensive income, net of income tax. In fiscal year 2020 we amended the defined benefit pension plan and the plan is now closed to new entrants. See Note 8 of the Notes to the Consolidated Financial Statements for additional information. |
Stock-Based Compensation | S TOCK -B ASED C OMPENSATION We account for stock options and restricted stock issued under our long term incentive plans in accordance with ASC 718, Compensation – Stock Compensation . The fair value of stock-based compensation is determined at the grant date. The related compensation expense is recognized over the appropriate vesting period. See Note 7 of the Notes to the Consolidated Financial Statements for additional information. |
Income Taxes | I NCOME TAXES Deferred income tax assets and liabilities are recorded for the impact of temporary differences between the tax basis of assets and liabilities and the amounts recognized for financial reporting purposes. Deferred tax assets are reviewed and a valuation allowance is established if management believes that it is more likely than not that some portion of our deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. In addition to existing valuation allowances, we provide for uncertain tax positions, if necessary, when such tax positions do not meet the recognition thresholds or measurement standards prescribed by ASC 740, Income Taxes . Amounts for uncertain tax positions are adjusted when new information becomes available or when positions are effectively settled. We recognize interest and penalties accrued related to uncertain tax positions in income tax expense. U.S. income tax expense and foreign withholding taxes are provided on remittances of foreign earnings and on unremitted foreign earnings that are not indefinitely reinvested. Where unremitted foreign earnings are indefinitely reinvested, no provision for federal or state tax expense is recorded. When circumstances change and we determine that some or all of the undistributed earnings will be remitted in the foreseeable future, a corresponding expense is accrued in the current period. See Note 5 of the Notes to the Consolidated Financial Statements for additional information about income taxes. |
Other Operating Income | O THER O PERATING I NCOME Included within Other Operating Income is revenue earned from a confidential license agreement. Pursuant to this agreement, the Company granted a non-exclusive, perpetual license to develop, manufacture, use, distribute and sell products produced using formulations under certain of our patents until their expiration and agreed to certain limitations on the ability of the parties to bring forth patent infringement claims or challenges relating to certain products in exchange for a one-time payment of $13,000,000 . This revenue is recognized at a point in time as it is considered functional intellectual property. |
New Accounting Pronouncements | N EW A CCOUNTING P RONOUNCEMENTS Recently Adopted Accounting Pronouncements On August 1, 2019 we adopted ASC 842, Leases , using the modified retrospective transition approach and, accordingly, we did not restate prior comparative period financial statements. As of the date of adoption, we elected the package of practical expedients that allowed us to forgo assessment under the ASC 842 guidance whether existing or expired contracts contained leases, the classification of expired or existing leases and the accounting for previously incurred initial direct costs. We also elected the practical expedient to forgo assessment under ASC 842 whether existing or expired land easements not previously accounted for under legacy leasing GAAP contain leases. The adoption of ASC 842 on August 1, 2019 resulted in the recognition of additional ROU assets and lease liabilities related to operating leases of $9,348,000 and $10,910,000 , respectively, on our Consolidated Balance Sheet. There was no material impact to any of our other consolidated financial statements. Recently Issued Accounting Standards In March 2020, the FASB issued guidance under ASC 848, Reference Rate Reform . This guidance provides optional expedients and exceptions to account for debt, leases, contracts, hedging relationships and other transactions that reference LIBOR or another reference rate if certain criteria are met. The guidance is effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating the potential effects of the adoption of this guidance on our Consolidated Financial Statements. In December 2019, the FASB issued guidance under ASC 740, Income Taxes , which simplifies the accounting for income taxes. The guidance removes several specific exceptions to the general principles in ASC 740 and clarifies and makes amendments to improve consistent application of and simplify existing accounting for other areas in ASC 740. This guidance is effective for our first quarter of fiscal year 2022, with early adoption permitted. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. In June 2016, the FASB issued guidance under ASC 326, Financial Instruments-Credit Losses , which requires companies to utilize an impairment model for most financial assets measured at amortized cost and certain other financial instruments, which include trade and other receivables, loans and held-to-maturity debt securities, to record an allowance for credit risk based on expected losses rather than incurred losses. In addition, this new guidance changes the recognition method for credit losses on available-for-sale debt securities, which can occur as a result of market and credit risk, as well as additional disclosures. In general, this guidance will require modified retrospective adoption for all outstanding instruments that fall under this guidance. This guidance is effective for our first quarter of fiscal year 2023. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. There have been no other accounting pronouncements issued but not yet adopted by us which are expected to have a material impact on our Consolidated Financial Statements. |
OPERATING SEGMENTS Level 2 (Pol
OPERATING SEGMENTS Level 2 (Policy) | 12 Months Ended |
Jul. 31, 2020 | |
Accounting Policies [Abstract] | |
Segment Reporting | We have two reportable operating segments: (1) Retail and Wholesale Products Group and (2) Business to Business Products Group. These operating segments are managed separately and each segment's major customers have different characteristics. The Retail and Wholesale Products Group customers include mass merchandisers, wholesale clubs, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies and sports field product users. The Business to Business Products Group customers include: processors and refiners of edible oils, petroleum-based oils and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products. |
FINANCIAL INSTRUMENTS Fair Valu
FINANCIAL INSTRUMENTS Fair Value (Policies) | 12 Months Ended |
Jul. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement, Policy | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized into one of three categories based on the lowest level of input that is significant to the fair value measurement. Categories in the hierarchy are as follows: |
STOCK-BASED COMPENSATION STOCK-
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION (Policies) | 12 Months Ended |
Jul. 31, 2020 | |
Accounting Policies [Abstract] | |
Share-based Payment Arrangement [Policy Text Block] | S TOCK -B ASED C OMPENSATION We account for stock options and restricted stock issued under our long term incentive plans in accordance with ASC 718, Compensation – Stock Compensation . The fair value of stock-based compensation is determined at the grant date. The related compensation expense is recognized over the appropriate vesting period. See Note 7 of the Notes to the Consolidated Financial Statements for additional information. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Level 3 (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Inventories | The composition of inventories was as follows as of July 31 (in thousands): 2020 2019 Finished goods $ 14,500 $ 13,957 Packaging 4,587 5,681 Other 4,806 4,525 Inventories $ 23,893 $ 24,163 |
Estimated Intangible Amortization Expense | Our estimated intangible amortization expense for the next five fiscal years is as follows (in thousands): 2021 $ 583 2022 $ 431 2023 $ 227 2024 $ 91 2025 $ 66 |
Acquired Finite-Lived Intangible Assets Weighted Average Amortization Period | The weighted average amortization period of our intangibles subject to amortization is as follows (in years): Weighted Average Amortization Period Trademarks and patents 14.3 Customer list 3.3 Total intangible assets subject to amortization 5.9 |
Property, Plant and Equipment Estimated Useful Lives | Years Buildings and leasehold improvements 3 - 40 Machinery and equipment Packaging 2 - 20 Processing 2 - 30 Mining and other 2 - 20 Office furniture and equipment 3 - 15 Vehicles 2 - 15 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
OPERATING SEGMENTS [Abstract] | |
Revenue by Principal Product by Operating Segment | Net sales for our principal products by segment are as follows (in thousands): Business to Business Products Group Retail and Wholesale Products Group Year Ended July 31, Product 2020 2019 2020 2019 Cat Litter $ 14,528 $ 13,764 $ 147,503 $ 135,489 Industrial and Sports — — 29,035 33,341 Agricultural and Horticultural 21,886 24,311 — — Bleaching Clay and Fluids Purification 50,117 51,905 2,429 2,318 Animal Health and Nutrition 17,729 15,897 — — Net Sales $ 104,260 $ 105,877 $ 178,967 $ 171,148 |
Segment Reporting Information | Net sales and operating income for each segment are provided below. The accounting policies of the segments are the same as those described in the Note 1 of the Notes to the Consolidated Financial Statements. We do not rely on any operating segment asset allocations and we do not consider them meaningful because of the shared nature of our production facilities; however, we have estimated the segment asset allocations below for those assets for which we can reasonably determine. The unallocated asset category is the remainder of our total assets. The asset allocation is estimated and is not a measure used by our chief operating decision maker about allocating resources to the operating segments or in assessing their performance. The corporate expenses line in the table below represents certain unallocated expenses, including primarily salaries, wages and benefits, purchased services, rent, utilities and depreciation and amortization associated with corporate functions such as research and development, information systems, finance, legal, human resources and customer service. Corporate expenses also include the annual incentive plan bonus accrual. Other income in fiscal year 2019 included net proceeds upon resolution of legal proceedings. The amount received under a confidential agreement resolving these legal proceedings was material to our financial results for the period. Other operating income in fiscal year 2020 relates to revenue earned from a license arrangement of our intellectual property. See Note 1 of the Notes to the Consolidated Financial Statements. July 31, Assets 2020 2019 (in thousands) Business to Business Products $ 72,987 $ 65,282 Retail and Wholesale Products 95,838 94,809 Unallocated assets 67,057 45,136 Total Assets $ 235,882 $ 205,227 Year Ended July 31, Net Sales Income 2020 2019 2020 2019 (in thousands) Business to Business Products $ 104,260 $ 105,877 $ 31,218 $ 31,388 Retail and Wholesale Products 178,967 171,148 15,859 8,683 Net Sales $ 283,227 $ 277,025 Other Operating Income 13,000 — Corporate Expenses (35,250 ) (29,659 ) Income from Operations 24,827 10,412 Total Other (Expense) Income, Net (1,807 ) 4,136 Income Before Income Taxes 23,020 14,548 Income Tax Expense (4,280 ) (1,933 ) Net Income $ 18,740 $ 12,615 Net (Loss) Income Attributable to Noncontrolling Interest $ (160 ) $ 4 Net Income Attributable to Oil-Dri $ 18,900 $ 12,611 |
Financial Information by Geographic Region | The following is a summary by fiscal year of financial information by geographic region (in thousands): 2020 2019 Sales to unaffiliated customers by: Domestic operations $ 268,007 $ 263,469 Foreign subsidiaries $ 15,220 $ 13,556 Sales or transfers between geographic areas: Domestic operations $ 6,566 $ 5,097 Income before income taxes: Domestic operations $ 24,494 $ 14,280 Foreign subsidiaries $ (1,474 ) $ 268 Net Income (Loss) attributable to Oil-Dri: Domestic operations $ 20,208 $ 12,456 Foreign subsidiaries $ (1,308 ) $ 155 Identifiable assets: Domestic operations $ 223,296 $ 195,032 Foreign subsidiaries $ 12,586 $ 10,195 |
Largest Customer Information | Sales to Walmart, our largest customer, are included in our Retail and Wholesale Products Group. The percentage of consolidated net sales and net accounts receivable attributed to Walmart are shown in the table below: 2020 2019 Net sales for the years ended July 31 19% 20% Net accounts receivable as of July 31 18% 26% |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Notes Payable [Abstract] | |
Schedule of Notes Payable | The composition of notes payable is as follows as of July 31 (in thousands): 2020 2019 Senior notes payable in annual installments on August 1. Final payment made in fiscal year 2020. Interest was payable semi-annually at an annual rate of 3.96%. $ — $ 6,167 Amended and Restated Note Purchase and Private Shelf Agreement. Annual principal installments on May 15: $1,000 in each fiscal year 2021 through 2030. Interest is payable semi-annually at an annual rate of 3.95% 10,000 — Less current maturities of notes payable (1,000 ) (3,083 ) Less unamortized debt issuance costs $ (152 ) $ (32 ) Noncurrent notes payable $ 8,848 $ 3,052 |
Schedule of Maturities | The following is a schedule by fiscal year of future principal maturities of notes payable as of July 31, 2020 (in thousands): 2021 $ 1,000 2022 1,000 2023 1,000 2024 1,000 2025 1,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
INCOME TAXES [Abstract] | |
Schedule of Components of Income Tax Expense | The provision for income tax expense by fiscal year consists of the following (in thousands): 2020 2019 Current Federal $ 3,768 $ (529 ) Foreign 5 (5 ) State 999 1,416 Current Income Tax Total 4,772 882 Deferred Federal (610 ) 1,344 Foreign (3 ) 113 State 121 (406 ) Deferred Income Tax Total (492 ) 1,051 Total Income Tax Expense $ 4,280 $ 1,933 |
Schedule of Effective Income Tax Rate Reconciliation | Principal reasons for variations between the statutory federal rate and the effective rates by fiscal year were as follows: 2020 2019 U.S. federal income tax rate 21.0 % 21.0 % Depletion deductions allowed for mining (4.8 ) (8.2 ) State income tax expense, net of federal tax expense 4.3 2.5 Difference in effective tax rate of foreign subsidiaries 1.2 0.2 Prior year income taxes (1.0 ) (1.9 ) Other (2.1 ) (0.3 ) Effective income tax rate 18.6 % 13.3 % |
Schedule of Deferred Tax Assets and Liabilities | The Consolidated Balance Sheets included the following tax effects of cumulative temporary differences as of July 31 (in thousands): ` 2020 2019 Assets Liabilities Assets Liabilities Depreciation $ — $ 3,926 $ — $ 3,995 Deferred compensation 1,779 — 2,121 — Postretirement benefits 3,293 — 6,100 — Lease right of use assets — 2,534 — — Lease liabilities 2,918 — — — Allowance for doubtful accounts 178 — 81 — Deferred marketing expenses — 194 — 326 Other assets — 9 390 — Accrued expenses 4,131 — 2,076 — Tax credits 147 — 250 — Amortization 48 — 166 — Inventories 343 — 264 — Depletion — 173 — 173 Stock-based compensation 987 — 556 — Reclamation 447 — 392 — Other assets – foreign 790 — 585 — Valuation allowance (923 ) — (732 ) — Total deferred taxes $ 14,138 $ 6,836 $ 12,249 $ 4,494 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive income by component (in thousands): Pension and Postretirement Health Benefits Cumulative Translation Adjustment Total Accumulated Other Comprehensive (Loss) Income Balance as of July 31, 2018 $ (10,384 ) $ (231 ) (10,615 ) Other comprehensive (loss) income before reclassifications, net of tax (5,089 ) a) 83 (5,006 ) Amounts reclassified from accumulated other comprehensive income, net of tax 582 b) — 582 Net current-period other comprehensive (loss) income, net of tax (4,507 ) 83 (4,424 ) Balance as of July 31, 2019 $ (14,891 ) $ (148 ) $ (15,039 ) Other comprehensive loss before reclassifications, net of tax (4,431 ) a) (112 ) (4,543 ) Amounts reclassified from accumulated other comprehensive income, net of tax 758 b) — 758 Curtailment/Settlement on Pension Plan 6,570 c) — 6,570 Net current-period other comprehensive income (loss), net of tax 2,897 (112 ) 2,785 Balance as of July 31, 2020 $ (11,994 ) $ (260 ) $ (12,254 ) a) Amounts are net of taxes of $ 1,359,000 and $1,607,000 in fiscal years 2020 and 2019 , respectively, and are included in Other Comprehensive Loss. b) Amounts are net of taxes of $242,000 and $185,000 in fiscal years 2020 and 2019 , respectively. Amounts are included in the components of net periodic benefit cost for the pension and postretirement health plans. c) Amount is net of taxes of $2,075,000 in fiscal year 2020 . Amounts are included in the components of net periodic benefit cost for the pension and postretirement health plans. See Note 8 of the Notes to the Consolidated Financial Statements for further information about pension and postretirement health benefits. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
STOCK-BASED COMPENSATION [Abstract] | |
Schedule of summary of restricted stock | A summary of restricted stock transactions under the plans is shown below. Number of Shares (in thousands) Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Unamortized Expense (in thousands) Non-vested restricted stock outstanding at July 31, 2018 178 $ 32.74 1.7 $ 3,050 Granted 321 $ 32.89 Vested (61 ) $ 31.90 Forfeited (24 ) $ 30.85 Non-vested restricted stock outstanding at July 31, 2019 414 $ 33.09 4.5 $ 10,474 Granted 26 $ 33.57 Vested (44 ) $ 32.53 Forfeited (6 ) $ 32.46 Non-vested restricted stock outstanding at July 31, 2020 390 $ 33.19 4.0 $ 7,784 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
Schedule of Obligations and Funded Status | The following tables provide a reconciliation of changes in the plans’ benefit obligations, asset fair values and funded status by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2020 2019 2020 2019 Change in benefit obligation : Benefit obligation, beginning of year $ 61,553 $ 54,267 $ 2,958 $ 2,667 Service cost 1,096 1,626 116 105 Interest cost 1,900 2,114 82 97 Actuarial loss 8,570 5,125 247 97 Benefits paid (1,663 ) (1,579 ) (112 ) (8 ) Curtailments (6,632 ) — — — Settlements (7,544 ) — — — Benefit obligation, end of year 57,280 61,553 3,291 2,958 Change in plan assets: Fair value of plan assets, beginning of year 40,725 40,971 — — Actual return on plan assets 5,816 1,333 — — Employer contribution 8,000 — 112 8 Benefits paid (1,663 ) (1,579 ) (112 ) (8 ) Settlements (7,544 ) — — — Fair value of plan assets, end of year 45,334 40,725 — — Funded status, recorded in Consolidated Balance Sheets $ (11,946 ) $ (20,828 ) $ (3,291 ) $ (2,958 ) |
Schedule of Amounts Recognized in Balance Sheet | The following table shows amounts recognized in the Consolidated Balance Sheets as of July 31 (in thousands): Pension Benefits Postretirement Health Benefits 2020 2019 2020 2019 Deferred income taxes $ 2,443 $ 5,346 $ 850 $ 754 Other current liabilities $ — $ — $ (97 ) $ (65 ) Other noncurrent liabilities $ (11,946 ) $ (20,828 ) $ (3,194 ) $ (2,893 ) Accumulated other comprehensive loss – net of tax: Net actuarial loss $ 11,642 $ 14,731 $ 352 $ 184 Prior service cost (income) $ — $ — $ — $ (24 ) |
Schedule of Net Benefit Costs | The following table shows the components of the net periodic pension and postretirement health benefit costs by fiscal year (in thousands): Pension Cost Postretirement Health Benefit Cost 2020 2019 2020 2019 Service cost $ 1,096 $ 1,626 $ 116 $ 105 Interest cost 1,900 2,114 82 97 Expected return on plan assets (2,790 ) (2,809 ) — — Amortization of: Prior service costs (income) — 2 (6 ) (6 ) Other actuarial loss 1,005 771 — — Settlement cost 2,012 — — — Net periodic benefit cost $ 3,223 $ 1,704 $ 192 $ 196 |
Schedule of Amounts Recognized in Other Comprehensive Income | The following table shows amounts, net of tax, that are recognized in other comprehensive income by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2020 2019 2020 2019 Net actuarial loss $ 4,243 $ 5,016 $ 188 $ 73 Amortization of: Prior service (cost) income — (1 ) 5 5 Amortization of actuarial loss (763 ) (586 ) — — Curtailment/Settlement $ (6,570 ) $ — $ — $ — Total recognized in other comprehensive (income) loss $ (3,090 ) $ 4,429 $ 193 $ 78 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The following table shows amortization amounts, net of tax, expected to be recognized in fiscal year 2021 in accumulated other comprehensive income (in thousands): Amortization of: Pension Benefits Postretirement Health Benefits Net actuarial loss $ 786 $ 11 Prior service income — (5 ) Total to be recognized as other comprehensive loss (income) $ 786 $ 6 |
Schedule of Expected Benefit Payments | The following table shows the estimated future benefit payments by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2021 $ 1,743 $ 115 2022 $ 1,794 $ 98 2023 $ 1,798 $ 121 2024 $ 1,842 $ 191 2025 $ 1,952 $ 234 2026-30 $ 11,484 $ 1,385 |
Schedule of Assumptions Used | The assumptions used in the previous calculations by fiscal year were as follows: Pension Benefits Postretirement Health Benefits 2020 2019 2020 2019 Discount rate for net periodic benefit costs 3.35% 4.04% 2.93% 3.81% Discount rate for year-end obligations 2.14% 3.35% 1.63% 2.93% Rate of increase in compensation levels for net periodic benefit costs —% 3.50% —% —% Rate of increase in compensation levels for year-end obligations —% 3.50% —% —% Long-term expected rate of return on assets 7.00% 7.00% —% —% |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | The following table reflects the effect on postretirement health costs and accruals in fiscal year 2020 of a one-percentage point change in the assumed health care cost trend (in thousands): One-Percentage Point Increase One-Percentage Point Decrease Effect on total service and interest cost $27 $(23) Effect on accumulated postretirement benefit obligation $337 $(297) |
Schedule of Allocation of Plan Assets | The targeted allocation percentages of plan assets is shown below for fiscal year 2021 and the actual allocation as of July 31: Asset Allocation Target fiscal 2021 2020 2019 Cash and accrued income 2% 1% —% Fixed income 38% 68% 42% Equity 60% 31% 58% In anticipation of the Lump Sum Option payments we adjusted our asset allocation in fiscal year 2020 and plan to revert back to our historical asset allocations in fiscal year 2021. The following table sets forth by level, within the fair value hierarchy, the Pension Plan's assets carried at fair value (in thousands): Fair Value At July 31, 2020 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Asset Class Cash and cash equivalents (a) $ 557 $ 557 $ — Equity securities (b) : U.S. companies 9,401 2,093 7,308 International companies 495 495 — Equity securities - international mutual funds: Developed market (c) 2,867 — 2,867 Emerging markets (d) 1,022 — 1,022 Commodities (e) — — — Fixed Income: U.S. Treasuries 3,014 — 3,014 Debt securities (f) 10,131 — 10,131 Government sponsored entities (g) 5,131 — 5,131 Multi-strategy bond fund (h) 10,547 — 10,547 Money market fund (i) 486 — 486 Other (j) 1,683 — 1,683 Total $ 45,334 $ 3,145 $ 42,189 Fair Value At July 31, 2019 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Asset Class Cash and cash equivalents (a) $ 66 $ 66 $ — Equity securities (b) : U.S. companies 13,775 4,147 9,628 International companies 2,609 2,609 — Equity securities - international mutual funds: Developed market (c) 5,275 — 5,275 Emerging markets (d) 1,141 — 1,141 Commodities (e) 637 — 637 Fixed Income: U.S. Treasuries 3,273 — 3,273 Debt securities(f) 8,103 — 8,103 Government sponsored entities (g) 2,087 — 2,087 Multi-strategy bond fund (h) 813 — 813 Money market fund (i) 557 — 557 Other (j) 2,389 — 2,389 Total $ 40,725 $ 6,822 $ 33,903 (a) Cash and cash equivalents consists of highly liquid investments which are traded in active markets. (b) This class represents equities traded on regulated exchanges, as well as funds that invest in a portfolio of such stocks. (c) These mutual funds seek long-term capital growth by investing no less than 80% of their assets in stocks of non- U.S. companies that are primarily in developed markets, but also may invest in emerging and less developed markets. (d) These mutual funds seek to track the performance of a benchmark index that measures the investment return of stock issued by companies located in emerging market countries. (e) These investments seek attractive total return by investing primarily in a diversified portfolio of commodity futures contracts and fixed income investments. (f) This class includes bonds and loans of U.S. and non-U.S. corporate issuers from diverse industries and bonds of domestic and foreign municipalities. (g) This class represents a beneficial ownership interest in a pool of single-family residential mortgage loans. These investments are generally not backed by the full faith and credit of the United States government, except for securities valued at $289,000 in our portfolio as of July 31, 2020 and $377,000 as of July 31, 2019 . (h) This class invests at least 80% of its net assets in bonds and other fixed income instruments issued by governmental or private-sector entities. More than 50% of its net assets are invested in mortgage-backed securities. The fund may invest up to 33 1/3% of its net assets in high-yield bonds, bank loans and assignments and credit default swaps. (i) These money market mutual funds seek to provide current income consistent with liquidity and stability of principal by investing in a diversified portfolio of high quality, short-term, dollar-denominated debt securities. These funds may include securities issued or guaranteed as to principal and interest by the U.S. government or its agencies, short-term securities issued by domestic or foreign banks, domestic and dollar-denominated foreign commercial papers, and other short-term corporate obligations and obligations issued or guaranteed by one or more foreign governments. (j) This class includes funds that use a number of other strategies, including arbitrage, to obtain long-term positive returns. The portfolio of instruments may include equities, debt securities, real estate properties, warrants, options, swaps, future contracts, forwards or other types of derivative instruments. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | We have no material finance leases, and variable costs for operating leases are immaterial. Operating lease costs are included in Cost of Sales or SG&A expenses based on the nature of the lease. The following table summarizes total lease costs for our operating leases (in thousands): For the Twelve Months Ended July 31, 2020 Operating Lease Cost Operating lease cost $ 2,219 Short-term operating lease cost 788 Supplemental cash flow information related to leases was as follows (in thousands): For the Twelve Months Ended July 31, 2020 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,878 Operating lease ROU assets and operating lease liabilities are separately presented on the Consolidated Balance Sheet, excluding leases with an initial term of twelve months or less. Other supplemental balance sheet information related to leases was as follows: For the Twelve Months Ended July 31, 2020 Weighted-average remaining lease term - operating leases 9.4 years Weighted-average discount rate - operating leases 3.87% |
Lessee, Operating Lease, Liability, Maturity | The following table summarizes scheduled minimum future lease payments due within twelve months for operating leases with terms longer than one year for which cash flows are fixed and determinable as of July 31, 2020 (in thousands): 2021 $ 2,552 2022 2,076 2023 1,106 2024 965 2025 885 Thereafter 6,131 Total 13,715 Less: imputed interest (2,410 ) Net lease obligation $ 11,305 |
Schedule of Future Minimum Rental Payments for Operating Leases | Rent expense for the fiscal year ended July 31, 2019 was $2,873,000 . The following table summarizes scheduled minimum future lease payments due within twelve months for operating leases with terms longer than one year for which cash flows are fixed and determinable as of July 31, 2019 (in thousands): 2020 $ 2,255 2021 1,640 2022 1,513 2023 1,038 2024 899 Thereafter 7,422 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Inventories (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Jul. 31, 2019 |
Finished goods | $ 14,500 | $ 13,957 |
Packaging | 4,587 | 5,681 |
Other | 4,806 | 4,525 |
Inventories | $ 23,893 | $ 24,163 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Intangible Assets Amortization Expense (Details) $ in Thousands | Jul. 31, 2020USD ($) |
Estimated Intangible Amortization Expense | |
2021 | $ 583 |
2022 | 431 |
2023 | 227 |
2024 | 91 |
2025 | $ 66 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Intangible Assets Weighted Average Amortization Period (Details) | 12 Months Ended |
Jul. 31, 2020 | |
Finite-Lived Intangible Assets | |
Finite-lived Intangible Assets, Weighted Average Amortization Period | 5 years 10 months 24 days |
Trademarks and patents | |
Finite-Lived Intangible Assets | |
Finite-lived Intangible Assets, Weighted Average Amortization Period | 14 years 3 months 18 days |
Customer list | |
Finite-Lived Intangible Assets | |
Finite-lived Intangible Assets, Weighted Average Amortization Period | 3 years 3 months 18 days |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Property, Plant and Equipment (Details) | 12 Months Ended |
Jul. 31, 2020 | |
Minimum | Buildings and leasehold improvements | |
Property, Plant and Equipment | |
Estimated useful life | 3 years |
Minimum | Machinery and Equipment - Packaging | |
Property, Plant and Equipment | |
Estimated useful life | 2 years |
Minimum | Machinery and Equipment - Processing | |
Property, Plant and Equipment | |
Estimated useful life | 2 years |
Minimum | Machinery and Equipment - Mining and Other | |
Property, Plant and Equipment | |
Estimated useful life | 2 years |
Minimum | Office furniture and equipment | |
Property, Plant and Equipment | |
Estimated useful life | 3 years |
Minimum | Vehicles | |
Property, Plant and Equipment | |
Estimated useful life | 2 years |
Maximum | Buildings and leasehold improvements | |
Property, Plant and Equipment | |
Estimated useful life | 40 years |
Maximum | Machinery and Equipment - Packaging | |
Property, Plant and Equipment | |
Estimated useful life | 20 years |
Maximum | Machinery and Equipment - Processing | |
Property, Plant and Equipment | |
Estimated useful life | 30 years |
Maximum | Machinery and Equipment - Mining and Other | |
Property, Plant and Equipment | |
Estimated useful life | 20 years |
Maximum | Office furniture and equipment | |
Property, Plant and Equipment | |
Estimated useful life | 15 years |
Maximum | Vehicles | |
Property, Plant and Equipment | |
Estimated useful life | 15 years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Narrative (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Aug. 02, 2019 | |
Maximum maturity of cash equivalents | 3 months | 3 months | |
Short-term investments original maturity maximum | 1 year | ||
Inventory obsolescence reserves | $ 926,000 | $ 704,000 | |
Amortization of intangibles | 804,000 | 862,000 | |
Indefinite-lived trademarks | 376,000 | 376,000 | |
Goodwill | 9,262,000 | 9,262,000 | |
Goodwill impairment | 0 | 0 | |
Stripping costs | 1,722,000 | 2,430,000 | |
Pre-production overburden removal costs | 316,000 | 0 | |
Land | 13,570,000 | 13,638,000 | |
Mineral rights | 2,165,000 | 2,165,000 | |
Pre-production development costs | 535,000 | 0 | |
Prepaid royalties | 1,232,000 | 1,184,000 | |
Depreciation | 13,119,000 | 12,468,000 | |
Interest Costs Capitalized | 0 | 0 | |
Impairment of property, plant and equipment | 0 | 0 | |
CARES Act, Current Payroll Tax Deferral | 864,000 | ||
CARES Act, Future Payroll Tax Deferral | 2,100,000 | ||
Advertising expense | 9,674,000 | 6,909,000 | |
Shipping and Handling Costs | 39,865,000 | 47,717,000 | |
Research and development costs | 2,765,000 | 3,202,000 | |
Other Operating Income | 13,000,000 | ||
Operating leases, Right-of-Use Assets | 9,816,000 | $ 0 | $ 9,348,000 |
Operating lease liabilities | $ 11,305,000 | $ 10,910,000 | |
Minimum | |||
Amortization period of intangible assets (years) | 4 years | ||
Maximum | |||
Amortization period of intangible assets (years) | 20 years | ||
Retail and Wholesale Products | |||
Goodwill | $ 5,489,000 | ||
Business to Business Products | |||
Goodwill | $ 3,773,000 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition (Details) - Payments in Advance - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Deferred Revenue Arrangement | ||
Liability for Payments in Advance | $ 247,000 | $ 259,000 |
Payments in Advance, Revenue Recognized | $ 232,000 |
OPERATING SEGMENTS Disaggregati
OPERATING SEGMENTS Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Revenue by Principal Product | ||
Net Sales | $ 283,227 | $ 277,025 |
Business to Business Products | ||
Revenue by Principal Product | ||
Net Sales | 104,260 | 105,877 |
Retail and Wholesale Products | ||
Revenue by Principal Product | ||
Net Sales | 178,967 | 171,148 |
Cat Litter | Business to Business Products | ||
Revenue by Principal Product | ||
Net Sales | 14,528 | 13,764 |
Cat Litter | Retail and Wholesale Products | ||
Revenue by Principal Product | ||
Net Sales | 147,503 | 135,489 |
Industrial and Sports | Business to Business Products | ||
Revenue by Principal Product | ||
Net Sales | 0 | 0 |
Industrial and Sports | Retail and Wholesale Products | ||
Revenue by Principal Product | ||
Net Sales | 29,035 | 33,341 |
Agricultural and Horticultural | Business to Business Products | ||
Revenue by Principal Product | ||
Net Sales | 21,886 | 24,311 |
Agricultural and Horticultural | Retail and Wholesale Products | ||
Revenue by Principal Product | ||
Net Sales | 0 | 0 |
Bleaching Clay and Fluids Purification | Business to Business Products | ||
Revenue by Principal Product | ||
Net Sales | 50,117 | 51,905 |
Bleaching Clay and Fluids Purification | Retail and Wholesale Products | ||
Revenue by Principal Product | ||
Net Sales | 2,429 | 2,318 |
Animal Health and Nutrition | Business to Business Products | ||
Revenue by Principal Product | ||
Net Sales | 17,729 | 15,897 |
Animal Health and Nutrition | Retail and Wholesale Products | ||
Revenue by Principal Product | ||
Net Sales | $ 0 | $ 0 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Segment Reporting Information | ||
Assets | $ 235,882 | $ 205,227 |
Net Sales | 283,227 | 277,025 |
Other Operating Income | 13,000 | 0 |
Corporate Expenses | (35,250) | (29,659) |
Income from Operations | 24,827 | 10,412 |
Total Other (Expense) Income, Net | (1,807) | 4,136 |
Income Before Income Taxes | 23,020 | 14,548 |
Income Taxes | (4,280) | (1,933) |
Net Income | 18,740 | 12,615 |
Net (Loss) Income Attributable to Noncontrolling Interest | (160) | 4 |
Net Income Attributable to Oil-Dri | 18,900 | 12,611 |
Business to Business Products | ||
Segment Reporting Information | ||
Assets | 72,987 | 65,282 |
Segment Net Sales | 104,260 | 105,877 |
Net Sales | 104,260 | 105,877 |
Segment Income | 31,218 | 31,388 |
Retail and Wholesale Products | ||
Segment Reporting Information | ||
Assets | 95,838 | 94,809 |
Segment Net Sales | 178,967 | 171,148 |
Net Sales | 178,967 | 171,148 |
Segment Income | 15,859 | 8,683 |
Unallocated Assets | ||
Segment Reporting Information | ||
Assets | $ 67,057 | $ 45,136 |
OPERATING SEGMENTS Financial In
OPERATING SEGMENTS Financial Information by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Financial Information by Geographic Region | ||
Sales to unaffiliated customers | $ 283,227 | $ 277,025 |
Net Income (Loss) attributable to Oil-Dr | 18,900 | 12,611 |
Identifiable assets | 235,882 | 205,227 |
Domestic Operations | ||
Financial Information by Geographic Region | ||
Sales to unaffiliated customers | 268,007 | 263,469 |
Sales or transfers between geographic areas | 6,566 | 5,097 |
Income before income taxes | 24,494 | 14,280 |
Net Income (Loss) attributable to Oil-Dr | 20,208 | 12,456 |
Identifiable assets | 223,296 | 195,032 |
Foreign subsidiaries | ||
Financial Information by Geographic Region | ||
Sales to unaffiliated customers | 15,220 | 13,556 |
Income before income taxes | (1,474) | 268 |
Net Income (Loss) attributable to Oil-Dr | (1,308) | 155 |
Identifiable assets | $ 12,586 | $ 10,195 |
OPERATING SEGMENTS Largest Cust
OPERATING SEGMENTS Largest Customer (Details) - Customer, Walmart | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Net sales for the years ended July 31 | ||
Revenue, Major customer | ||
Concentration risk, percentage | 19.00% | 20.00% |
Net accounts receivable as of July 31 | ||
Revenue, Major customer | ||
Concentration risk, percentage | 18.00% | 26.00% |
OPERATING SEGMENTS Narrative (D
OPERATING SEGMENTS Narrative (Details) | 12 Months Ended |
Jul. 31, 2020USD ($)segment | |
Segment Reporting Information | |
Number of Reportable Segments | segment | 2 |
Foreign subsidiaries | |
Segment Reporting Information | |
Cash held at foreign banks | $ | $ 3,038,000 |
DEBT Notes Payable (Details)
DEBT Notes Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Debt Instrument | ||
Less current maturities of notes payable | $ (1,000) | $ (3,083) |
Noncurrent Notes payable | 8,848 | 3,052 |
Senior Notes Issued November 2010 | ||
Debt Instrument | ||
Notes Payable | $ 0 | 6,167 |
Less current maturities of notes payable | (3,083) | |
Less unamortized debt issuance costs | (32) | |
Noncurrent Notes payable | 3,052 | |
Starting payments | Aug. 1, 2019 | |
Ending payments | Jul. 31, 2020 | |
Annual rate | 3.96% | |
Series B Senior Notes | ||
Debt Instrument | ||
Notes Payable | $ 10,000 | $ 0 |
Less current maturities of notes payable | (1,000) | |
Less unamortized debt issuance costs | (152) | |
Noncurrent Notes payable | 8,848 | |
Annual Principal Installments | $ 1,000 | |
Starting payments | May 15, 2021 | |
Ending payments | May 15, 2030 | |
Annual rate | 3.95% |
DEBT Maturities of Notes Payabl
DEBT Maturities of Notes Payable (Details) - Series B Senior Notes $ in Thousands | Jul. 31, 2020USD ($) |
Notes Payable Maturities | |
2021 | $ 1,000 |
2022 | 1,000 |
2023 | 1,000 |
2024 | 1,000 |
2025 | $ 1,000 |
DEBT Debt (Narrative) (Details)
DEBT Debt (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Debt Instrument | ||
Shelf Notes | $ 75,000,000 | |
Senior Notes Issued November 2010 | ||
Debt Instrument | ||
Face amount | 18,500,000 | |
Repayments of Debt | 3,100,000 | |
Minimum overdue financial obligation considered as default | $ 5,000,000 | |
Debt Instrument, Maturity Date Range, Start | Aug. 1, 2019 | |
Debt Instrument, Maturity Date Range, End | Jul. 31, 2020 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.96% | |
Series B Senior Notes | ||
Debt Instrument | ||
Face amount | $ 10,000,000 | |
Minimum overdue financial obligation considered as default | 5,000,000 | |
Annual Principal Installments | $ 1,000,000 | |
Debt Instrument, Maturity Date Range, Start | May 15, 2021 | |
Debt Instrument, Maturity Date Range, End | May 15, 2030 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | |
Line of Credit, BMO Harris | ||
Debt Instrument | ||
Expiration date | Jan. 31, 2024 | |
Maximum borrowing capacity | $ 45,000,000 | |
Maximum borrowing capacity for letters of credit | $ 10,000,000 | |
Variable interest rate, prime based | 3.50% | |
Variable interest rate, LIBOR based | 1.50% | |
Line of credit amount outstanding | $ 0 | $ 0 |
Minimum overdue financial obligation considered as default | $ 1,000,000 |
FINANCIAL INSTRUMENTS Narrative
FINANCIAL INSTRUMENTS Narrative (Details) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash Equivalents, Fair Value Disclosure | $ 6,000 | $ 26,000 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Long-term Debt, Fair Value | $ 11,631,000 | $ 6,357,000 |
INCOME TAXES Income Tax Provisi
INCOME TAXES Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Current - Federal | $ 3,768 | $ (529) |
Current - Foreign | 5 | (5) |
Current - State | 999 | 1,416 |
Current Income Tax Total | 4,772 | 882 |
Deferred - Federal | (610) | 1,344 |
Deferred - Foreign | (3) | 113 |
Deferred - State | 121 | (406) |
Deferred Income Tax Total | (492) | 1,051 |
Total Income Tax Expense | $ 4,280 | $ 1,933 |
INCOME TAXES Income Tax Effecti
INCOME TAXES Income Tax Effective Rate Reconciliation (Details) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
U.S. federal income tax rate | 21.00% | 21.00% |
Depletion deductions allowed for mining | (4.80%) | (8.20%) |
State income tax expense, net of federal tax expense | 4.30% | 2.50% |
Difference in effective tax rate of foreign subsidiaries | 1.20% | 0.20% |
Prior year income taxes | (1.00%) | (1.90%) |
Other | (2.10%) | (0.30%) |
Effective income tax rate | 18.60% | 13.30% |
INCOME TAXES Components of Defe
INCOME TAXES Components of Deferred Tax Assets and Liabilities (Details) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Deferred Tax Asset | ||
Depreciation | $ 0 | $ 0 |
Deferred compensation | 1,779,000 | 2,121,000 |
Postretirement benefits | 3,293,000 | 6,100,000 |
Lease right of use assets | 0 | 0 |
Lease liabilities | 2,918,000 | 0 |
Allowance for doubtful accounts | 178,000 | 81,000 |
Deferred marketing expenses | 0 | 0 |
Other assets | 0 | 390,000 |
Accrued expenses | 4,131,000 | 2,076,000 |
Tax credits | 147,000 | 250,000 |
Amortization | 48,000 | 166,000 |
Inventories | 343,000 | 264,000 |
Depletion | 0 | 0 |
Stock-based compensation | 987,000 | 556,000 |
Reclamation | 447,000 | 392,000 |
Other assets - foreign | 790,000 | 585,000 |
Valuation allowance | (923,000) | (732,000) |
Total deferred tax assets | 14,138,000 | 12,249,000 |
Deferred Tax Liability | ||
Depreciation | 3,926,000 | 3,995,000 |
Deferred compensation | 0 | 0 |
Postretirement benefits | 0 | 0 |
Lease right of use assets | 2,534,000 | 0 |
Lease liabilities | 0 | 0 |
Allowance for doubtful accounts | 0 | 0 |
Deferred marketing expenses | 194,000 | 326,000 |
Other liabilities | 9,000 | 0 |
Accrued expenses | 0 | 0 |
Tax credits | 0 | 0 |
Amortization | 0 | 0 |
Inventories | 0 | 0 |
Depletion | 173,000 | 173,000 |
Stock-based compensation | 0 | 0 |
Reclamation | 0 | 0 |
Other assets - foreign | 0 | 0 |
Valuation allowance | 0 | 0 |
Total deferred tax liabilities | $ 6,836,000 | $ 4,494,000 |
INCOME TAXES Narrative (Details
INCOME TAXES Narrative (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Operating Loss Carryforwards | $ 2,000,000 | |
Unrecognized tax benefits, liability | 0 | $ 0 |
Unrecognized tax benefits, penalties and interest expense | 0 | 0 |
Unrecognized tax benefits, penalties and interest accrued | $ 0 | 0 |
Minimum | ||
Foreign and U.S. state tax statute of limitations (years) | 3 years | |
Maximum | ||
Foreign and U.S. state tax statute of limitations (years) | 5 years | |
Deferred Tax Asset | ||
Deferred Tax Assets, Valuation Allowance | $ 923,000 | $ 732,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Accumulated Other Comprehensive Income (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive (Loss) Income, beginning balance | $ (15,039,000) | |
Other Comprehensive (Loss) Income | 2,785,000 | $ (4,424,000) |
Accumulated Other Comprehensive (Loss) Income, ending balance | (12,254,000) | (15,039,000) |
Pension and Postretirement Health Benefits | ||
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive (Loss) Income, beginning balance | (14,891,000) | (10,384,000) |
Other comprehensive income (loss), before reclassifications, net of tax | (4,431,000) | (5,089,000) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 758,000 | 582,000 |
Curtailment/Settlement on Pension Plan | 6,570,000 | |
Other Comprehensive (Loss) Income | 2,897,000 | (4,507,000) |
Accumulated Other Comprehensive (Loss) Income, ending balance | (11,994,000) | (14,891,000) |
Tax on Other comprehensive (loss) incomes, Pension and postretirement benefit Plans before reclassifications | (1,359,000) | 1,607,000 |
Tax on amount reclassified from AOCI, Pension and postretirement health benefits | 242,000 | 185,000 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Adjustment for Settlement or Curtailment Gain (Loss), Tax | 2,075,000 | |
Cumulative Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive (Loss) Income, beginning balance | (148,000) | (231,000) |
Other comprehensive income (loss), before reclassifications, net of tax | (112,000) | 83,000 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 |
Curtailment/Settlement on Pension Plan | 0 | |
Other Comprehensive (Loss) Income | (112,000) | 83,000 |
Accumulated Other Comprehensive (Loss) Income, ending balance | (260,000) | (148,000) |
AOCI Attributable to Parent | ||
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive (Loss) Income, beginning balance | (15,039,000) | (10,615,000) |
Other comprehensive income (loss), before reclassifications, net of tax | (4,543,000) | (5,006,000) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 758,000 | 582,000 |
Curtailment/Settlement on Pension Plan | 6,570,000 | |
Other Comprehensive (Loss) Income | 2,785,000 | (4,424,000) |
Accumulated Other Comprehensive (Loss) Income, ending balance | $ (12,254,000) | $ (15,039,000) |
STOCK-BASED COMPENSATION (Summa
STOCK-BASED COMPENSATION (Summary of Restricted Stock Activity) (Details) - Restricted Stock - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2018 | |
Summary of Restricted Stock Activity | |||
Nonvested restricted stock outstanding, Number | 390 | 414 | 178 |
Nonvested restricted stock outstanding, Weighted Average Grant Date Fair Value | $ 33.19 | $ 33.09 | $ 32.74 |
Nonvested restricted stock outstanding, Weighted Average Remaining Contractual Term (Years) | 4 years | 4 years 6 months | 1 year 8 months 12 days |
Nonvested retricted stock outstanding, Unamortized Expense | $ 7,784 | $ 10,474 | $ 3,050 |
Granted, Number | 26 | 321 | |
Granted, Weighted Average Grant Date Fair Value | $ 33.57 | $ 32.89 | |
Vested, Number | (44) | (61) | |
Vested, Weighted Average Grant Date Fair Value | $ 32.53 | $ 31.90 | |
Forfeitures, Number | (6) | (24) | |
Forfeitures, Weighted Average Grant Date Fair Value | $ 32.46 | $ 30.85 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Restricted Stock | ||
Share-based Compensation Award Disclosure | ||
Share-based compensation expense | $ 2,560,000 | $ 1,834,000 |
Tax benefit from compensation expense | $ 808,000 | $ 579,000 |
2006 Plan | ||
Share-based Compensation Award Disclosure | ||
Number of shares authorized | 1,219,500 | |
Number of shares available for grant | 370,836 | |
2006 Plan - Restricted Stock | Minimum | ||
Share-based Compensation Award Disclosure | ||
Award vesting period (years) | 2 years | |
2006 Plan - Restricted Stock | Maximum | ||
Share-based Compensation Award Disclosure | ||
Award vesting period (years) | 5 years |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFITS Change in Benefit Obligation and Plan Assets, Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Pension Benefits | ||
Change in benefit obligation: | ||
Benefit obligation, beginning of year | $ 61,553 | $ 54,267 |
Service cost | 1,096 | 1,626 |
Interest cost | 1,900 | 2,114 |
Actuarial loss | 8,570 | 5,125 |
Benefits paid | (1,663) | (1,579) |
Curtailment | (6,632) | 0 |
Settlement | (7,544) | 0 |
Benefit obligation, end of year | 57,280 | 61,553 |
Change in plan assets: | ||
Fair value of plan assets. beginning of year | 40,725 | 40,971 |
Actual return on plan assets | 5,816 | 1,333 |
Employer contribution | 8,000 | 0 |
Benefits paid | (1,663) | (1,579) |
Settlement | (7,544) | 0 |
Fair value of plan assets. end of year | 45,334 | 40,725 |
Funded status, recorded in Consolidated Balance Sheets | (11,946) | (20,828) |
Postretirement Health Benefits | ||
Change in benefit obligation: | ||
Benefit obligation, beginning of year | 2,958 | 2,667 |
Service cost | 116 | 105 |
Interest cost | 82 | 97 |
Actuarial loss | 247 | 97 |
Benefits paid | (112) | (8) |
Curtailment | 0 | 0 |
Settlement | 0 | 0 |
Benefit obligation, end of year | 3,291 | 2,958 |
Change in plan assets: | ||
Fair value of plan assets. beginning of year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contribution | 112 | 8 |
Benefits paid | (112) | (8) |
Settlement | 0 | 0 |
Fair value of plan assets. end of year | 0 | 0 |
Funded status, recorded in Consolidated Balance Sheets | $ (3,291) | $ (2,958) |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT BENEFITS Amounts Recognized in Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Jul. 31, 2019 |
Defined Benefit Plans and Postretirement Health Benefits | ||
Other noncurrent Liabilities | $ (15,140) | $ (23,721) |
Pension Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Deferred income tax | 2,443 | 5,346 |
Other current liabilities | 0 | 0 |
Other noncurrent Liabilities | (11,946) | (20,828) |
Accumulated other comprehensive income - net of tax, Net actuarial loss | 11,642 | 14,731 |
Accumulated other comprehensive income - net of tax, Prior service cost (income) | 0 | 0 |
Postretirement Health Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Deferred income tax | 850 | 754 |
Other current liabilities | (97) | (65) |
Other noncurrent Liabilities | (3,194) | (2,893) |
Accumulated other comprehensive income - net of tax, Net actuarial loss | 352 | 184 |
Accumulated other comprehensive income - net of tax, Prior service cost (income) | $ 0 | $ (24) |
PENSION AND OTHER POSTRETIREM_5
PENSION AND OTHER POSTRETIREMENT BENEFITS Components of net periodic benefit cost (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Pension Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Service cost | $ 1,096,000 | $ 1,626,000 |
Interest cost | 1,900,000 | 2,114,000 |
Expected return on plan assets | (2,790,000) | (2,809,000) |
Amortization of: Prior service costs (income) | 0 | 2,000 |
Amortization of: Other actuarial loss | 1,005,000 | 771,000 |
Settlement cost | 2,012,000 | 0 |
Net periodic benefit cost | 3,223,000 | 1,704,000 |
Postretirement Health Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Service cost | 116,000 | 105,000 |
Interest cost | 82,000 | 97,000 |
Expected return on plan assets | 0 | 0 |
Amortization of: Prior service costs (income) | (6,000) | (6,000) |
Amortization of: Other actuarial loss | 0 | 0 |
Settlement cost | 0 | 0 |
Net periodic benefit cost | $ 192,000 | $ 196,000 |
PENSION AND OTHER POSTRETIREM_6
PENSION AND OTHER POSTRETIREMENT BENEFITS Amounts recognized in other comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Defined Benefit Plans and Postretirement Health Benefits | ||
Total recognized in other comprehensive loss (income) | $ (2,897) | $ 4,507 |
Pension Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Net actuarial loss (gain) | 4,243 | 5,016 |
Amortization of: Prior service (cost) income | 0 | (1) |
Amortization of actuarial (loss) gain | (763) | (586) |
Curtailment/Settlement | (6,570) | 0 |
Total recognized in other comprehensive loss (income) | (3,090) | 4,429 |
Postretirement Health Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Net actuarial loss (gain) | 188 | 73 |
Amortization of: Prior service (cost) income | 5 | 5 |
Amortization of actuarial (loss) gain | 0 | 0 |
Curtailment/Settlement | 0 | 0 |
Total recognized in other comprehensive loss (income) | $ 193 | $ 78 |
PENSION AND OTHER POSTRETIREM_7
PENSION AND OTHER POSTRETIREMENT BENEFITS Amounts to be recognized in other comprehensive income in the next fiscal year (Details) $ in Thousands | Jul. 31, 2020USD ($) |
Pension Benefits | |
Defined Benefit Plans and Postretirement Health Benefits | |
Amortization of: Net actuarial loss | $ 786 |
Amortization of: Prior service income | 0 |
Total to be recognized in other comprehensive loss (income) | 786 |
Postretirement Health Benefits | |
Defined Benefit Plans and Postretirement Health Benefits | |
Amortization of: Net actuarial loss | 11 |
Amortization of: Prior service income | (5) |
Total to be recognized in other comprehensive loss (income) | $ 6 |
PENSION AND OTHER POSTRETIREM_8
PENSION AND OTHER POSTRETIREMENT BENEFITS Estimated future benefit payments (Details) $ in Thousands | Jul. 31, 2020USD ($) |
Pension Benefits | |
Defined Benefit Plans and Postretirement Health Benefits | |
2021 | $ 1,743 |
2022 | 1,794 |
2023 | 1,798 |
2024 | 1,842 |
2025 | 1,952 |
2026-30 | 11,484 |
Postretirement Health Benefits | |
Defined Benefit Plans and Postretirement Health Benefits | |
2021 | 115 |
2022 | 98 |
2023 | 121 |
2024 | 191 |
2025 | 234 |
2026-30 | $ 1,385 |
PENSION AND OTHER POSTRETIREM_9
PENSION AND OTHER POSTRETIREMENT BENEFITS Assumptions used in calculations (Details) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Pension Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Discount rate for net periodic benefit costs | 3.35% | 4.04% |
Discount rate for year-end obligations | 2.14% | 3.35% |
Rate of increase in compensation levels for net periodic benefit costs | 0.00% | 3.50% |
Rate of increase in compensation levels for year-end obligations | 0.00% | 3.50% |
Long-term expected rate of return on assets | 7.00% | 7.00% |
Postretirement Health Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Discount rate for net periodic benefit costs | 2.93% | 3.81% |
Discount rate for year-end obligations | 1.63% | 2.93% |
PENSION AND OTHER POSTRETIRE_10
PENSION AND OTHER POSTRETIREMENT BENEFITS Effect of one-percentage point change in assumed healthcare trend (Details) - Postretirement Health Benefits $ in Thousands | 12 Months Ended |
Jul. 31, 2020USD ($) | |
Defined Benefit Plans and Postretirement Health Benefits | |
Effect of One Percentage Point Increase on total service and interest cost | $ 27 |
Effect of One Percentage Point Decrease on total service and interest cost | (23) |
Effect of One Percentage Point Increase on accumulated postretirement benefit obligation | 337 |
Effect of One Percentage Point Decrease on accumulated postretirement benefit obligation | $ (297) |
PENSION AND OTHER POSTRETIRE_11
PENSION AND OTHER POSTRETIREMENT BENEFITS Plan Assets Allocation Percentages (Details) | Jul. 31, 2020 | Jul. 31, 2019 |
Cash and accrued income | ||
Defined Benefit Plan Disclosure | ||
Target Allocation % | 2.00% | |
Actual Allocation % | 1.00% | 0.00% |
Fixed income | ||
Defined Benefit Plan Disclosure | ||
Target Allocation % | 38.00% | |
Actual Allocation % | 68.00% | 42.00% |
Equity | ||
Defined Benefit Plan Disclosure | ||
Target Allocation % | 60.00% | |
Actual Allocation % | 31.00% | 58.00% |
PENSION AND OTHER POSTRETIRE_12
PENSION AND OTHER POSTRETIREMENT BENEFITS Fair value level of pension plan assets (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2018 | |
Equity securities - international mutual funds: Developed market | |||
Defined Benefit Plan Disclosure | |||
Minimum % of Fund Assets Invested in Non-US Stocks Developed Market | 80.00% | 80.00% | |
Fixed Income: Government sponsored entities | |||
Defined Benefit Plan Disclosure | |||
Amount Backed by US Government | $ 289,000 | $ 377,000 | |
Fixed Income: Multi-strategy bond fund [Member] | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 45,334,000 | 40,725,000 | $ 40,971,000 |
Pension Benefits | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 3,145,000 | 6,822,000 | |
Pension Benefits | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 42,189,000 | 33,903,000 | |
Pension Benefits | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 557,000 | 66,000 | |
Pension Benefits | Cash and Cash Equivalents | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 557,000 | 66,000 | |
Pension Benefits | Cash and Cash Equivalents | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Equity securities U.S. companies | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 9,401,000 | 13,775,000 | |
Pension Benefits | Equity securities U.S. companies | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 2,093,000 | 4,147,000 | |
Pension Benefits | Equity securities U.S. companies | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 7,308,000 | 9,628,000 | |
Pension Benefits | Equity securities International companies | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 495,000 | 2,609,000 | |
Pension Benefits | Equity securities International companies | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 495,000 | 2,609,000 | |
Pension Benefits | Equity securities International companies | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Equity securities - international mutual funds: Developed market | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 2,867,000 | 5,275,000 | |
Pension Benefits | Equity securities - international mutual funds: Developed market | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Equity securities - international mutual funds: Developed market | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 2,867,000 | 5,275,000 | |
Pension Benefits | Equity securities - international mutual funds: Emerging market | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 1,022,000 | 1,141,000 | |
Pension Benefits | Equity securities - international mutual funds: Emerging market | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Equity securities - international mutual funds: Emerging market | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 1,022,000 | 1,141,000 | |
Pension Benefits | Commodity Based Investments | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 637,000 | |
Pension Benefits | Commodity Based Investments | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Commodity Based Investments | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 637,000 | |
Pension Benefits | Fixed Income: U.S. Treasuries | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 3,014,000 | 3,273,000 | |
Pension Benefits | Fixed Income: U.S. Treasuries | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Fixed Income: U.S. Treasuries | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 3,014,000 | 3,273,000 | |
Pension Benefits | Fixed Income: Debt securities | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 10,131,000 | 8,103,000 | |
Pension Benefits | Fixed Income: Debt securities | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Fixed Income: Debt securities | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 10,131,000 | 8,103,000 | |
Pension Benefits | Fixed Income: Government sponsored entities | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 5,131,000 | 2,087,000 | |
Pension Benefits | Fixed Income: Government sponsored entities | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Fixed Income: Government sponsored entities | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 5,131,000 | 2,087,000 | |
Pension Benefits | Fixed Income: Multi-strategy bond fund [Member] | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 10,547,000 | 813,000 | |
Pension Benefits | Fixed Income: Multi-strategy bond fund [Member] | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Pension Benefits | Fixed Income: Multi-strategy bond fund [Member] | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 10,547,000 | 813,000 | |
Pension Benefits | Money Market Funds | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 486,000 | 557,000 | |
Pension Benefits | Money Market Funds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Money Market Funds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 486,000 | 557,000 | |
Pension Benefits | Other | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 1,683,000 | 2,389,000 | |
Pension Benefits | Other | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Other | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | $ 1,683,000 | $ 2,389,000 |
PENSION AND OTHER POSTRETIRE_13
PENSION AND OTHER POSTRETIREMENT BENEFITS Narrative (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax | $ 6,632,000 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Adjustment for Settlement or Curtailment Gain (Loss), Tax | 1,592,000 | |
Accumulated benefit obligation | 57,280,000 | $ 54,696,000 |
Defined Benefit Plan First Voluntary Contribution | 5,000,000 | |
Defined Benefit Plan Second Voluntary Contribution | 3,000,000 | |
Pension plan estimated employer contributions in next fiscal year | 0 | |
Settlement cost | $ 2,012,000 | 0 |
Postretirement Health Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Health care cost trend rate assumed | 7.20% | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 4.50% | |
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2038 | |
Settlement cost | $ 0 | 0 |
401K Plan | ||
Defined Contribution Plan Disclosure | ||
Contribution to defined contribution plans | $ 2,035,000 | $ 764,000 |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match Before Change | 50.00% | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay Before Change | 4.00% | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% |
DEFERRED COMPENSATION Deferred
DEFERRED COMPENSATION Deferred Comp and Bonus (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Deferred Compensation | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||
Annual Total Amount Deferred | $ 266,000 | $ 418,000 |
Deferred Compensation Interest Expense | 171,000 | 204,000 |
Deferred Compensation Payments to Participants | 440,000 | 1,144,000 |
Deferred Compensation Recorded Liability | 4,017,000 | 3,560,000 |
Executive Deferred Bonus | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||
Deferred Compensation Arrangement with Individual, Contributions by Employer | $ 1,352,000 | $ 513,000 |
Deferred Compensation Arrangement with Individual, Requisite Service Period | 3 years |
DEFERRED COMPENSATION SERP (Det
DEFERRED COMPENSATION SERP (Details) - Supplemental Employee Retirement Plan - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
SERP Disclosure | ||
SERP, benefit obligation | $ 1,447,000 | $ 2,708,000 |
SERP expense | 34,000 | $ 539,000 |
Curtailment gain | $ 1,296,000 |
LEASES Narrative (Details)
LEASES Narrative (Details) | 12 Months Ended |
Jul. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating Leases, Rent Expense | $ 2,873,000 |
LEASES Lease, Cost (Details)
LEASES Lease, Cost (Details) $ in Thousands | 12 Months Ended |
Jul. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating Lease, Cost | $ 2,219 |
Short-term Lease, Cost | 788 |
Operating Lease, Payments | $ 1,878 |
Operating Lease, Weighted Average Remaining Lease Term | 9 years 4 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.87% |
LEASES Lessee, Operating Lease,
LEASES Lessee, Operating Lease, Liability, Payment Due, Rolling Maturity (Details) - USD ($) | Jul. 31, 2020 | Aug. 02, 2019 |
Leases [Abstract] | ||
2021 | $ 2,552,000 | |
2022 | 2,076,000 | |
2023 | 1,106,000 | |
2024 | 965,000 | |
2025 | 885,000 | |
Thereafter | 6,131,000 | |
Total | 13,715,000 | |
Less: imputed interest | (2,410,000) | |
Net Lease Obligation | $ 11,305,000 | $ 10,910,000 |
LEASES Operating Leases, Future
LEASES Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity (Details) $ in Thousands | Jul. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 2,255 |
2021 | 1,640 |
2022 | 1,513 |
2023 | 1,038 |
2024 | 899 |
Thereafter | $ 7,422 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Director - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Related Party Transaction | ||
Net sales to related party customer | $ 388,000 | $ 462,000 |
Accounts receivable due from related party customer | 0 | 10,000 |
Purchases from related party vendor | 420,000 | 271,000 |
Accounts payable due to related party vendor | $ 0 | $ 0 |